Question: Required: (1) Compute the total fixed cost and variable cost per unit using (a) high-low method, and (b) least square method. Express your answers as

Required: (1) Compute the total fixed cost and variable cost per unit using (a) high-low method, and (b) least square method. Express your answers as Y = a + bx where a is total fixed cost and b is the variable cost per unit. (2) Compute the total cost @ 3,500 units using your answers in (1) Naruto Corporation has observed the following processing costs at various levels of activity over the last 15 periods: Period Units Produced Total Costs Period Units Produced Total Costs 2,250 19,000 9 5,750 26,000 2 5,500 26,000 10 3,000 21,500 3 6,000 28,000 11 4,250 24,000 2,750 20,000 12 5,000 25,000 5 4,500 23,500 13 3,250 22,000 6 5,250 26,000 14 4,750 24,000 3,750 22,000 15 4,000 23,000 8 2,500 20,500

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