Use the high-low method to calculate the cost formula


During the months of April through September, the following total utility costs were paid at various production volumes:

Total
Total Utility Production
Month Costs Volume

April $ 5,000 16,000 units
May 7,000 26,000 units
June 8,000 32,000 units
July 6,000 20,000 units
August 4,000 12,000 units
September 10,000 36,000 units

a. Use the high-low method to calculate the cost formula utility costs.
b. If the production volume were expected to be 22,000 units for the month of November, what amount of total costs would be expected?

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Accounting Basics: Use the high-low method to calculate the cost formula
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