Question: Required information Problem 21-2A Cost behavior estimation LO P1 The following information applies to the questions displayed below) Alden Co.'s monthly unit sales and total

Required information Problem 21-2A 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 Month 7 2 3 4 5 6 Units Sold 320,000 160,000 280.000 200.000 300,000 200,000 Total Cost $160,000 100,000 220.000 100,000 230,000 120,000 9 10 11 12 Unato Sold 319,000 280,000 80,000 160,000 109,000 110,000 Total.com $220,000 260,000 64,000 140,000 100,000 80,000 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 0 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 Totalfixed costs
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
