Fagesi Ltd incurred the costs as indicate below. During the six months ended 30 Dec, these...

Transcribed Image Text:

Fagesi Ltd incurred the costs as indicate below. During the six months ended 30 Dec, these costs changed, but not in direct relation to the volume. MONTH JULY AUGUST SEPT OCT NOV DEC NUMBER OF UNITS PRODUCED 980 1000 1050 950 1040 1060 HISTORICAL COST P19 800 P20 000 P20 500 P19 500 P20 400 P20 600 Required: a) Use high-low method to determine the variable cost per unit and the total fixed costs b) Forecast on the total cost if an estimated 1 100 units are to be manufactured in January the following year Fagesi Ltd incurred the costs as indicate below. During the six months ended 30 Dec, these costs changed, but not in direct relation to the volume. MONTH JULY AUGUST SEPT OCT NOV DEC NUMBER OF UNITS PRODUCED 980 1000 1050 950 1040 1060 HISTORICAL COST P19 800 P20 000 P20 500 P19 500 P20 400 P20 600 Required: a) Use high-low method to determine the variable cost per unit and the total fixed costs b) Forecast on the total cost if an estimated 1 100 units are to be manufactured in January the following year

Answer rating: 100% (QA)

To determine the variable cost per unit and the total fixed costs using the highlow method we need t... View the full answer