To follow is information about the units produced and total ...

[Shelles]

To follow is information about the units produced and total manufacturing costs for Snow Enterprises for the past six months.

Month	Number of units produced	Total manufacturing costs
January	7,940	$5,900
February	7,500	$5,460
March	6,400	$5,000
April	6,600	$5,500
May	4,740	$5,100
June	7,800	$5,840

Using the high-low method, what is the variable cost per unit at Snow Enterprises?
◦ $0.74
◦ $1.08
◦ $0.25
◦ $4.00

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[kellyjaisingh]

To follow is information about the units produced and total manufacturing costs for Snow Enterprises for the past six months.

Month	Number of units produced	Total manufacturing costs
January	7,940	$5,900
February	7,500	$5,460
March	6,400	$5,000
April	6,600	$5,500
May	4,740	$5,100
June	7,800	$5,840

Using the high-low method, what is the monthly fixed manufacturing cost at Snow Enterprises?
◦ $800
◦ $1,985
◦ $11,000
◦ $3,915

[kxciann]

$3,915

[Brittanyd9008]

To follow is information about the units produced and total manufacturing costs for Snow Enterprises for the past six months.

Month	Number of units produced	Total manufacturing costs
January	7,940	$5,900
February	7,500	$5,460
March	6,400	$5,000
April	6,600	$5,500
May	4,740	$5,100
June	7,800	$5,840

Using the high-low method, what will the total monthly manufacturing costs be if Snow Enterprises produces 7,500 units?
◦ $1,875
◦ $5,790
◦ $3,915
◦ $3,860

[nguyenhoanhat]

$5,790

[tichca]

To follow is information about the units produced and total manufacturing costs for Darryl Rug Company for the past six months.

Month	Number of units produced	Total manufacturing costs
January	28,800	$21,500
February	31,200	$22,500
March	25,200	$19,500
April	26,400	$20,000
May	30,800	$23,000
June	29,000	$21,900

Darryl Rug Company uses the high-low method to estimate its costs.

Answer the following questions:

1.	What is the variable cost per unit?

2.	What is the monthly fixed manufacturing cost?

3.	Write the cost equation that could be used to predict Darryl Rug Company's total

manufacturing costs.

4.	What will the total monthly manufacturing costs be if the company produces 28,000 units?

[parker125]

Parts 1 and 2	​
High cost	$22,500
Low cost	$(19,500)
Change in cost	$3,000
​	​
High activity	31,200
Low activity	(25,200)
Change in activity	6,000
​	​
Change in cost	$3,000
Divide by	Divide by
Change in activity	6,000
Variable cost per unit	$0.50
​	​
Now, using high point data:	​
Total variable cost at high point:	​
High activity	31,200
Variable cost per unit	$0.50
Total variable cost at high point	$15,600
​	​
Total cost at high point	$22,500
Less total variable cost at high point	$(15,600)
Fixed cost	$6,900

Part 3:  y = $0.50x + $6,900

Part 4	​
​	​
Total cost at new volume:	​
Anticipated production volume	28,000
Variable cost per unit	$0.50
Total variable cost at new volume	$14,000
Fixed cost	$6,900
Monthly operating cost at new volume	$20,900