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The company uses the high-low method to analyze costs

High-low method -

The following cost data pertain to 19X6 operations of Heritage Products:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Shipping costs $58,200 $58,620 $60,125 $59,400

Orders shipped 120 140 175 150

The company uses the high-low method to analyze costs.

a. Determine the variable cost per order shipped.

b. Determine the fixed shipping costs per quarter.

c. If present cost behavior patterns continue, determine total shipping costs for 19X7 if activity amounts to 570 orders.

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Accounting Basics: The company uses the high-low method to analyze costs

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Accounting Basics: The company uses the high-low method to analyze costs

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