1. Presented below is the production data for six months showing the mixed costs incurred by North Company.

Month Cost Units July $5,890 4,100 August $4,012 3,200 September $7,480 6,300 October $9,000 7,500 November $5,800 5,800 December $7,336 6,600

North Company uses the high-low method to analyze mixed costs. The cost function is ________ where Y= Total Cost and X= Number of units. A) Y = $440 + $1.12X B) Y = $440 + $1.20X C) Y = $300 + $1.16X D) Y = $7,850 + $0.132X

2.

Slocum Company has determined the following information about a new product. The manufacturing process used for the product is very complex and it has a higher proportion of indirect costs than direct costs. The company wants a 100% markup on cost. The following data is available:

Product cost according to traditional costing system $4.00 per unit Product cost according to activity-based costing system $7.00 per unit

What price per unit should Slocum Company use for this new product? A) $4.00 B) $7.00 C) $8.00 D) $14.00