Felix & Company reports the following information. Period 1 Units Produced Total Costs $ 2,530 10...

  

Transcribed Image Text:

Felix & Company reports the following information. Period 1 Units Produced Total Costs $ 2,530 10 234567899 400 3,130 800 3,730 1,200 4,330 1,600 4,930 2,000 5,530 2,400 6,130 2,800 6,730 3,200 7,330 3,600 7,930 Exercise 18-5 (Algo) Measuring costs using high-low method LO P1 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. High-Low method - Calculation of variable cost per unit Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs High-Low method - Calculation of fixed costs (2) Estimated cost if 3,000 units are produced: Estimated total cost Felix & Company reports the following information. Period 1 Units Produced Total Costs $ 2,530 10 234567899 400 3,130 800 3,730 1,200 4,330 1,600 4,930 2,000 5,530 2,400 6,130 2,800 6,730 3,200 7,330 3,600 7,930 Exercise 18-5 (Algo) Measuring costs using high-low method LO P1 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. High-Low method - Calculation of variable cost per unit Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs High-Low method - Calculation of fixed costs (2) Estimated cost if 3,000 units are produced: Estimated total cost