The James Inc. has provided the following information: Units of Output 33,000 Units 46,200 Units Direct materials
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Question:
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.
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
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