Crane Inc. has decided to use the high-low method to estimate the total cost and the fixed

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Crane Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Total Costs Units Produced $700,000 10,000 15,000 22,500 840,000 920,000

a. Determine the variable cost per unit and the fixed cost.
b. Based on part (a), estimate the total cost for 14,000 units of production.

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Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

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Authors: James Reeve, Carl S. Warren, Jonathan Duchac

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Question Posted: Dec 12, 2018 12:38 PM

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Crane Inc. has decided to use the high-low method to estimate the total cost and the fixed

Question:

Total Costs Units Produced $700,000 10,000 15,000 22,500 840,000 920,000

Step by Step Answer:

a The fixed cost can be determined by subtracting the estimated total variable cost from the total c...View the full answer

Financial and Managerial Accounting Using Excel for Success

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