Question: I need help with the following problem solving to make sure I am doing it correctly. This will help understand and know where I could

I need help with the following problem solving to make sure I am doing it correctly. This will help understand and know where I could learn from.

  1. The managerial accountant at Fast and Mean Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers to enjoy in the marketplace. The managerial accountant reported that the company uses the high-low method to estimate the costs in the new budget. The managerial accountant reported the following information:

Month Total Machine-Hours Total Costs

January 250,000 $5,500,000

February 248,000 $5,260,000

March 249,000 $5,400,000

April 248,000 $5,220,000

May 238,000 $5,180,000

June 230,000 $5,130,000

  1. Compute the slope of the mixed cost, or the variable cost per unit of activity.
  2. Compute the vertical intercept, or the fixed cost component of the mixed cost.
  3. What is the mixed cost equation?

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