Question Content Area High-Low Method The manufacturing costs of Kellam Industries for the first three months of the year follow:   Total Costs Units Produced January $425,700   2,365 units February 565,710   4,420   March 662,200   6,665   Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a.  Variable cost per unit $fill in the blank 1 b.  Total fixed cost $fill in the blank 2

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1BE: High-low method The manufacturing costs of Rosenthal Industries for the first three months of the...
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High-Low Method

The manufacturing costs of Kellam Industries for the first three months of the year follow:

  Total Costs Units Produced
January $425,700   2,365 units
February 565,710   4,420  
March 662,200   6,665  

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

a.  Variable cost per unit $fill in the blank 1
b.  Total fixed cost $fill in the blank 2
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