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    Cost Management Systems

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    The Baker Company has accumulated the following data concerning a mixed cost. The company is using the units produced as the activity level.

    Units Produced Total Cost

    August 10,000 $14,940

    September 8,600 $13,450

    October 7,100 $11,200

    November 7,700 $12,200

    December 8,200 $12,660

    1. Using the high-low method, compute the variable and fixed cost elements.
    2. If the company produces 8,000 units, estimate the total cost.

    (Look at Attachment for Excel Sheet)

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    https://brainmass.com/business/business-management/399130

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    Your response is in Excel so you can see the formulas and computations. The ...

    Solution Summary

    Your response is in Excel so you can see the formulas and computations. The procedure for selecting the "high" and the "low" is given and then the formulas are shown and computed for you as a template for other problems. The projection for 8,000 units is computed using the prediction equation derived from the methodology.

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