Questions -
Q1. Assume a Co. has the following available information about costs:
|
Year
|
Activity (units)
|
Total Operating Costs
|
|
2010
|
139,000
|
$364,000
|
|
2011
|
171,000
|
$428,000
|
Use the high low method to develop determine the variable cost per unit.
Q2. Calculate the total estimated cost for a company that produces 5,000 units of a product with the following cost behavior information:
Fixed costs are $20,000.
Variable cost per unit is $3 per unit produced.