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During the Months of January Through June, the Following Total

Question 67

Essay

During the months of January through June, the following total utility costs were paid at various production volumes:
 Month  Total Utility Cost  Total Production Volume  January $10,00032,000 units  February 14,00052,000 units  March 16,00064,000 units  April 12,00040,000 units  May 8,00024,000 units  June 20,00072,000 units \begin{array}{lcc}\text { Month } & \text { Total Utility Cost } & \text { Total Production Volume }\\\text { January } & \$ 10,000 & 32,000 \text { units } \\\text { February } & 14,000 & 52,000 \text { units } \\\text { March } & 16,000 & 64,000 \text { units } \\\text { April } & 12,000 & 40,000 \text { units } \\\text { May } & 8,000 & 24,000 \text { units } \\\text { June } & 20,000 & 72,000 \text { units }\end{array}
a.Use the high-low method to calculate the cost formula utility costs.
b.If the production volume were expected to be 50,000 units for the month of July, what amount of total costs would be expected?

Correct Answer:

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