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trasher [3.6K]
4 years ago
7

The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $63,100 1,1

00 units May 80,920 1,800 June 100,900 2,600 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. $ per unit b. Using the high-low method, determine the total fixed costs. $
Business
1 answer:
shusha [124]4 years ago
5 0

Answer:

The variable cost per unit is $25.20

Total Fixed Cost is $35380

Explanation:

a.

The high-low method is used to separate mixed cost and give the variable component per unit in the mixed cost.

We take the highest and lowest cost and related activity level.

The Variable cost per unit = (100900 - 63100) / (2600 - 1100)

VC per unit = $25.20

b.

The total fixed cost is,

Total Cost at 1100 units = 63100

Variable cost at 1100 units = 25.20 * 1100 = 27720

Total fixed cost = 63100 - 27720 = $35380

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Agata [3.3K]

Answer:

D) $8,200 favorable

Explanation:

Hockey Accessories Corporation manufactured 21,600 duffle bags during March. The following data pertain to ​March:

                                                      Actual                      Static Budget

Production                                 21,600 units                22,000 units

Machine hours                           1,150 hours                  2,200 hours

Fixed overhead costs                 $ 84,200                    $ 92,400

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Hockey Accessories Corporation estimated its fixed overhead costs at $92,400, but the actual overhead costs were only $84,200. The difference between estimated and actual costs is $8,200 favorable variance (= $92,400 - $84,200) since the fixed overhead costs were lower than estimated.

4 0
3 years ago
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Norma-Jean [14]

The answer is:

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Answer:

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