1. M. Munda Company produces and sells rattan baskets. The number of units produced and the corresponding total production costs for six month, w  hich are representatives for the year, are as follows:

Month                          Units produced                         Production costs

April                             500                                          P4, 000

May                              700                                          P8, 000

June                             900                                          P6, 000

July                               600                                          P7, 500

August                          800                                          P8, 500

September                    550                                          P7, 250

1. Using the least-square method, the variable production cost per unit is
   1. P5
   2. P10
   3. P0.27
   4. P3.74
2. Using the least-square method, the monthly fixed production cost  is
   1. P1, 500
   2. P18, 000
   3. P4, 350
   4. P52, 200
3. If the high-low points method is used, the results when compared to those under the method of least squares are

Variable cost per unit    Total fixed costs

1. Equal                            Equal
2. Higher by P1.26             Lower by P2, 850
3. Lower by P1.26             Higher by P2, 850
4. Higher by P5                 Lower by P1, 500

Answer rating: 100% (QA)

SOLUTION1 UNIT PRODUCED X TOTAL COST Y XY X2 500 4000 2000000 250000 700 8000 5600000 490000 90... View the full answer