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Hear Right Company has identified certain variable and fixed costs in its production of hearing aids. Management wants you to divide one of its mixed costs into its fixed and variable portions. Here are the data for this cost: a. Month January February March April May June July August September October Units 20,800 20,000 22,000 25,600 28,400 30,000 32,800 35,600 37,600 40,000 Costs $57,600 54,000 58,500 57,600 58,500 62,100 63,900 68,400 72,000 77,400 Using the high-low method, determine the total amount of fixed costs and the amount of variable cost per unit. Draw the cost line. b. Prepare a scatter diagram, plot the actual costs, and visually fit a linear cost line to the points. Estimate the amount of total fixed costs and the variable cost per unit. Hear Right Company has identified certain variable and fixed costs in its production of hearing aids. Management wants you to divide one of its mixed costs into its fixed and variable portions. Here are the data for this cost: a. Month January February March April May June July August September October Units 20,800 20,000 22,000 25,600 28,400 30,000 32,800 35,600 37,600 40,000 Costs $57,600 54,000 58,500 57,600 58,500 62,100 63,900 68,400 72,000 77,400 Using the high-low method, determine the total amount of fixed costs and the amount of variable cost per unit. Draw the cost line. b. Prepare a scatter diagram, plot the actual costs, and visually fit a linear cost line to the points. Estimate the amount of total fixed costs and the variable cost per unit.
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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