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