Required information Problem 18-2A Cost behavior estimation LO P1 [The following information applies to the questions displayed below.) Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month 1 2 3 4 5 6 Units sold 322,000 167.000 267,000 207.000 292,000 192,000 Total Cont $159,500 103,250 207,600 102,000 203,500 114,000 Month 7 8 9 10 11 12 Units sold 358,000 272,000 75,600 152,000 96,000 102,000 Total Cont $263,504 153,750 63,000 132,625 96,000 79,650 Problem 18-2A Part 1 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of Variable Cost per unit High-Low method - Calculation of Fixed Costs 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 Cost at high point minus cost at low point Cost at low point minus cost at high point Volume at high point minus volume at low point Volume at low point minus volume at high point point Change in cost Change in volume Total cost Total volume Total fixed costs Problem 18-2A Part 2 2. Predict future total costs when sales volume is (a) 386,000 units and (b) 426,000 units. Predictions 386,000 Sales (units) 426,000 Total $ 0 $ 0