Mixed Costs Using High/Low Method
RZ Players accumulated the following production and overhead cost data for the past five months related to its production of cell phones:
|
Production (cell phones) |
Overhead Cost |
| January |
13,500 |
|
|
$42,000 |
|
|
| February |
12,500 |
|
|
32,500 |
|
|
| March |
13,550 |
|
|
30,900 |
|
|
| April |
17,300 |
|
|
37,000 |
|
|
| May |
14,200 |
|
|
36,500 |
|
|
Required:
Round your answers to the nearest cent, if necessary. Use your rounded variable cost per unit for sequential calculations.
A. Use the high/low method to calculate the variable cost per unit and fixed costs for RZ Players.
| Variable cost per unit |
$ per phone |
| Fixed cost |
$ |
What are estimated total costs for production of 32,550 cell phones?