The James Inc. has provided the following information: Units of Output 33,000 Units 46,200 Units Direct materials

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The James Inc. has provided the following information:

Units of Output 33,000 Units 46,200 Units

Direct materials $ 316,800 $ 443,520

Workers' wages 1,188,000 1,663,200

Supervisors' salaries 343,200 343,200

Equipment depreciation 166,320 166,320

Maintenance 89,760 121,440

Utilities 422,400 580,800

Total $2,526,480 $3,318,480

Using the high-low method and the information provided above,

a. identify the linear cost function equation (be sure to variable and fixed components in the equation)

b. estimate the total cost at 38,000 units of output.

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Managerial Accounting

ISBN: 978-0078111006

14th edition

Authors: Ray Garrison, Eric Noreen and Peter Brewer

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Posted Date: Aug 03, 2018 01:20 AM

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The James Inc. has provided the following information: Units of Output 33,000 Units 46,200 Units Direct materials

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Managerial Accounting

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