Forster is estimating costs for the last half of the year based on activity during the first
Question:
Required
A. Using the high/ low cost estimation method, determine the total variable cost per unit made.
B. Using the high/ low cost estimation method, determine the total fixed cost per month.
C. What is the cost estimation equation?
D. Estimate the total cost of 11,000 units are made during July using the equation developed in part (C).
E. Why are the high and low points chosen based on units?
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Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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