FREE Trial

W & O Inc. has decided to use the high-low method to estimate the total cost and the fixed and

Question:

W & O Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Units

Produced Total Costs

10,000 $750,000

22,500 845,000

30,000 950,000


a. Determine the variable cost per unit and the fixed cost.

b. Based on part (a), estimate the total cost for 25,000 units of production.


This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 78% (14 reviews)

a The fixed cost can be determined by subtracting the estimated total variable cost …View the full answer


answer-question
Answered By
tutor-profile-image
Kalyan M. Ranwa
I have more than seven years of teaching experience in physics and mechanical engineering.
5.00+ 1+ Reviews 10+ Question Solved
Related Book For  answer-question
Accounting

Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: July 17, 2012 07:23:28
See More Questions

Students also viewed these Managerial Accounting questions

Q:
The management of an entity has decided to use the fair value basis for the measurement of its equipment. Some of this equipment is very hard to obtain and has in fact increased in value over the...
A:
Para 50 of IAS 16 notes that depreciation is a process o......
Q:
The Arkade Company has decided to use a 15 percent allowance factor based on job time. Calculate the standard time for each work element and for the totaljob. Mean Observed Time minutes 1.20 1.00...
A:
ST NT AF where AF 1 PFD 1 0 15 1 15 S......
Q:
The Pilot Pen Company has decided to use 15 test markets to examine the sensitivity of demand for its new product to various prices, as shown in the following table. Advertising effort was identical...
A:
The Pilot Pen data set of 15 test markets Regression results are as follows Coefficients Standard Er......
Q:
On January 1, 2018, Doctors Credit Union (DCU) issued 7%, 20-year bonds payable with face value of $200,000. The bonds pay interest on June 30 and December 31. Requirements 1. If the market interest...
A:
Requirements 1 Premium Since the contract or stated rate of 7......
Q:
Using the data in BE17-10, prepare the cost section of the production cost report for Pix Company. In exercise Pix Company has the following production data for March: no beginning work in process,...
A:
Preparation of cost section in production cost report It is given as per the production data of Marc......
Q:
In her hand a softball pitcher swings a ball of mass 0.250 kg around a vertical circular path of radius 60.0 cm before releasing it from her hand. The pitcher maintains a component of force on the...
A:
The distance traveled by the ball from the top of the arc to the bottom is R The......
Q:
Kareem bought a rental house in March 2017 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2019, he had a tennis court built in the backyard at a cost...
A:
a b C Original basis of land Original basis of house Less Depreciation Adjusted basis of h......
Q:
Robert and Majorie Wake owned land that they used as both a cattle ranch and a farm. Each spring and autumn, the Wakes would drive their cattle from the ranch portion of the operation across an...
A:
Judgment for the Nelsons affirmed The Johnsons allege that the Butler Springs easement was in......
Q:
Draft an encomium speech (of praise) that celebrates a remote control for a television, which is typically considered ridiculous to be worthy of such praise. The goal is to demonstrate you understand...
A:
Ladies and gentlemen distinguished guests and enthusiasts of modern conveniences Today we gather to extol an invention often overlooked a humble yet t......
Q:
Paul Rodriguez and Samantha Martins are in an automobile accident on a road in Cambridge, Massachusetts, (Middlesex County). Paul is from Salem, Massachusetts, (Essex County). Samantha is from...
A:
Subject matter jurisdiction is the requirement that a given court have power to hear the specific kind of claim that is brought to that court While litigating parties may waive personal jurisdiction t......
Q:
Laser Tex Inc. manufactures low-end computer components within a relevant range of 100,000 to 140,000 disks per year. Within this range, the following partially completed manufacturing cost schedule...
A:
CDs produced 100 000 120 000 140 000 Total costs Total variable costs 40 000......
Q:
Great Plains Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by...
A:
The fixed cost can be determined by subtracting the estimated total variab......
Q:
Following a shock to a firm's intrinsic value, the share price will slowly but surely approach that new intrinsic value. Is this view characteristic of a technical analyst or a believer in efficient...
A:
Some people may say it is consistent with both This is consistent with efficient markets......
Q:
What is a performance measurement system? How does it work?
A:
A Performance Measurement System is a structured framework or set of processes and tools designed to assess and evaluate the performance of an organization department project or individual against pre......
Q:
Examine why change is difficult to implement.
A:
Change can be difficult to implement in various contexts whether in organizations personal lives or society as a whole Several factors contribute to the challenges associated with change Resistance to......
Q:
Present similarities and differences between Simons and Kepner-Tregoe methods.
A:
Herbert A Simon s Normative Decision Making Model and the Kepner Tregoe KT Decision Analysis method are both approaches to decision making that provide structured frameworks for analyzing and solving......
Q:
Explain the concept of bounded-rationality and how decision support systems attempt to overcome that limitation.
A:
Bounded rationality is a concept in decision making theory introduced by Nobel laureate Herbert A Simon It suggests that in reality individuals and organizations often make decisions under conditions......
Q:
Describe data integration.
A:
Data integration is a process that involves combining and unifying data from various sources formats and locations into a single coherent and valuable dataset The goal of data integration is to provid......
Q:
How can an online music service provide free music to some customers?
A:
An online music service can provide free music to some customers by using a variety of......
Q:
(a) Prove that form an orthonormal basis for R3 for the usual dot product. (b) Find the coordinates of v = (1, 1, 1)T relative to this basis. (c) Verify formula (5.5) in this particular case. 48-65...
A:
a We compute v 1 v 2 v 1 v 3 v......
Q:
Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldsons 2-year, $20,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Dolds journal entries for the initial...
A:
Notes Receivable Discount on Notes Receivable Cash......
Q:
Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldsons 2-year, $20,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Dolds journal entries for the initial...
A:
Notes Receivable Discount on Notes Receivable Cash......
Q:
Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldsons 2-year, $20,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Dolds journal entries for the initial...
A:
Notes Receivable Discount on Notes Receivable Cash......
A Framework For Human Resource Management 6th Edition - ISBN: 0132556375 - Free Book