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