Bundle: Managerial Accounting, 15th + Cengagenowv2, 1 Term Printed Access Card
15th Edition
ISBN: 9781337955386
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 6, Problem 1BE
High-low method
The
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The manufacturing costs of Mocha Industries for three months of the year are as follows:
Total Cost
Production
April
$67,904
2,230
Units
May
72,176
3,120
June
78,944
4,530
a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.$ per unit
b. Using the high-low method, determine the total fixed costs.
Abdulwahab Corporation is estimating the cost function for total cost of production of product A using the high-low method. The data collected for the past year is as following:
Number of units Total
Quarter produced Costs
1 4,000 $ 1,000
2 5,400 1,280
3 7,000 1,600
4 9,000 2,000
Calculate the following amounts:
The variable cost per unit
The fixed cost
Explain the method used by the company to estimate the cost function. Suggest other methods than may be used to estimate cost function.
The manufacturing costs of Bartee-Allen Enterprises for the second three months of the yearfollow:
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
Chapter 6 Solutions
Bundle: Managerial Accounting, 15th + Cengagenowv2, 1 Term Printed Access Card
Ch. 6 - Describe how total variable costs and unit...Ch. 6 - Which of the following costs would be classified...Ch. 6 - Describe how total fixed costs and unit fixed...Ch. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - What does operating leverage measure, and how is...
Ch. 6 - High-low method The manufacturing costs of...Ch. 6 - Contribution margin Waite Company sells 250,000...Ch. 6 - Prob. 3BECh. 6 - Prob. 4BECh. 6 - Prob. 5BECh. 6 - Operating leverage Haywood Co. reports the...Ch. 6 - Margin of safety Jorgensen Company has sales of...Ch. 6 - Classify Costs Following is a list of various...Ch. 6 - Identify cost graphs The following cost graphs...Ch. 6 - Identify activity bases For a major university,...Ch. 6 - Prob. 4ECh. 6 - Identify fixed and variable costs Intuit Inc....Ch. 6 - Relevant range and fixed and variable costs Child...Ch. 6 - High-low method Ziegler Inc. has decided to use...Ch. 6 - Prob. 8ECh. 6 - Contribution margin ratio Young Company budgets...Ch. 6 - Contribution margin and contribution margin ratio...Ch. 6 - Prob. 11ECh. 6 - Break-even sales Anheuser-Busch InBev SA/NV (BUD)...Ch. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Break-even analysis for a service company3 Sprint...Ch. 6 - Prob. 17ECh. 6 - Prob. 18ECh. 6 - Prob. 19ECh. 6 - Prob. 20ECh. 6 - Prob. 21ECh. 6 - Prob. 22ECh. 6 - Prob. 23ECh. 6 - Prob. 24ECh. 6 - Prob. 25ECh. 6 - Classify costs Seymour Clothing Co. manufactures a...Ch. 6 - Break-even sales under present and proposed...Ch. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Contribution margin, break-even sales,...Ch. 6 - Classify costs Cromwell Furniture Company...Ch. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - Prob. 5PBCh. 6 - Contribution margin, break-even sales,...Ch. 6 - Analyze Global Airs cost-volume-profit...Ch. 6 - Prob. 2MADCh. 6 - Prob. 3MADCh. 6 - Prob. 4MADCh. 6 - Prob. 1TIFCh. 6 - Prob. 3TIFCh. 6 - Profitability strategies Somerset Inc. has...Ch. 6 - Prob. 5TIFCh. 6 - Analysis of costs for a shipping department Sales...Ch. 6 - Taylor Corporation is analyzing the cost behavior...Ch. 6 - Prob. 2CMACh. 6 - Bolger and Co. manufactures large gaskets for the...Ch. 6 - Prob. 4CMA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost $71,260 73,735 77,585 April May June Production 1,120 units 1,570 units 2,270 units a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. per unit LA b. Using the high-low method, determine the total fixed costs.arrow_forwardThe manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $52,866 1,860 Units May 55,160 2,600 Units June 58,818 3,780 Units (a) Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. per unit (b) Using the high-low method, determine total fixed costs.arrow_forwardGregorie Tool & Die reports the following information for the quarter: Sales price Fixed costs (for the quarter) Selling and administration Production Variable cost (per unit) Materials Labor Plant supervision Selling and administrative Number of units (for the quarter) Required: Select the answer for each of the following costs. a. Variable cost per unit. b. Variable production cost per unit. c. Full cost per unit. d. Full absorption cost per unit. e. Prime cost per unit. f. Conversion cost per unit. g. Contribution margin per unit. h. Gross margin per unit. $ 120 47,820 143,460 28 25 18 19 23,910 unitsarrow_forward
- The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $ 63,100 1,100 units May 80,920 1,800 June 100,900 2,600 Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed costs.arrow_forwardThe manufacturing cost of Calico Industries for three months of the year are provided below: Total Cost Production (units) April $115,300 264,900 May 85,000 168,100 June 95,300 245,200 Using the high-low method, the variable cost per unit and the total fixed costs are Iarrow_forwardThe manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $92,660 1,540 Units May 95,140 2,160 Units June 99,020 3,130 Units (a) Using the high-low method, determine the variable cost per unit. Round your answers to two decimal places.$ per unit (b) Using the high-low method, determine total fixed costs.$arrow_forward
- Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years operations: es aw all Variable costs per unit: Manufacturing: Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $53 per unit. Req 1A 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and…arrow_forwardThe Western Company presents the production and cost data for the first six months of the 2015.Determine the following using High-low methoda. estimated variable cost rate b. fixed cost c. Also determine the cost function on the basis of data given above.arrow_forwardThe manufacturing costs of Calico Industries for three months of the year are provided below: Total Cost Production (units) April $120,600 280,200 May 91,100 166,500 June 104,000 237,900 Using the high-low method, the variable cost per unit and the total fixed costs arearrow_forward
- Total production costs of prior periods for a company are listed as follows. Assume that the same cost behavior patterns can be extended linearly over the range of 3,000 to 35,000 units and that the cost driver for each cost is the number of units produced.arrow_forwardThe manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $124,740 1,815 units February 165,770 3,400 March 194,040 5,115 Using the high-low method, determine (a) the Costs that vary in total dollar amount as the level of activity changes.variable cost per unit and (b) the total Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed cost. Round all answers to the nearest whole dollar.arrow_forward1. High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. 2. Contribution Margin United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
How to Estimate Project Costs: A Method for Cost Estimation; Author: Online PM Courses - Mike Clayton;https://www.youtube.com/watch?v=YQ2Wi3Jh3X0;License: Standard Youtube License