1) Mixed cost – high-low method analysis Byrnes Company accumulated the following data concerning a mixed cost, using units produced as the activity level. Units produced 9,800 8,500 7,000 7,600 8,100 Month March April May June Total cost $14,740 $13,250 $11,100 $12,000 $12,460 July a. Compute the variable-cost and fixed cost elements using the high-low method. b. Using the information from your answer to part (a), write the cost formula. c. Estimate the total cost if the company produces 8,000 units.
1) Mixed cost – high-low method analysis Byrnes Company accumulated the following data concerning a mixed cost, using units produced as the activity level. Units produced 9,800 8,500 7,000 7,600 8,100 Month March April May June Total cost $14,740 $13,250 $11,100 $12,000 $12,460 July a. Compute the variable-cost and fixed cost elements using the high-low method. b. Using the information from your answer to part (a), write the cost formula. c. Estimate the total cost if the company produces 8,000 units.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....
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Transcribed Image Text:Cost Accounting assignment
1) Mixed cost – high-low method analysis
Byrnes Company accumulated the following data concerning a mixed cost, using units produced
as the activity level.
Month
Units produced
Total cost
$14,740
$13,250
March
9,800
8,500
April
May
7,000
7,600
8,100
$11,100
$12,000
$12,460
June
July
a. Compute the variable-cost and fixed cost elements using the high-low method.
b. Using the information from your answer to part (a), write the cost formula.
c. Estimate the total cost if the company produces 8,000 units.
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