The output and production cost of a computer manufacturer for the last four months are as follows: Month Units 8,000 9,600 Мay June 9,500 9,300 9,300 7,900 July August 7,700 7,600 Required: Using the High-Low method, calculate the following: - (a) Variable cost per unit (b) Total fixed cost per unit (c) Total cost that would be incurred in a month for an output of 8,500.
The output and production cost of a computer manufacturer for the last four months are as follows: Month Units 8,000 9,600 Мay June 9,500 9,300 9,300 7,900 July August 7,700 7,600 Required: Using the High-Low method, calculate the following: - (a) Variable cost per unit (b) Total fixed cost per unit (c) Total cost that would be incurred in a month for an output of 8,500.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 38E: Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month:...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:The output and production cost of a computer manufacturer for the last four months
are as follows:
Month
Units
8,000
9,600
9,500
9,300
9,300
Мay
June
7,900
July
August
7,700
7,600
Required:
Using the High-Low method, calculate the following: -
(а)
Variable cost per unit
(b)
Total fixed cost per unit
(c)
Total cost that would be incurred in a month for an output of 8,500.
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