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

Question

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

Quizplus · Accepted Answer

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

To Follow Is Information About the Units Produced and Total