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During the Months of April Through September, the Following Total

Question 53

Essay

During the months of April through September, the following total utility costs were paid at various production volumes:  Month  April  May  June  July  August  September  Total  Total Utility  Production  Costs Volume$5,00016,000 units 7,00026,000 units 8,00032,000 units 6,00020,000 units 4,00012,000 units 10,00036,000 units \begin{array}{c}\begin{array}{l}\\\\\underline{\text { Month }} \\\text { April } \\\text { May } \\\text { June } \\\text { July } \\\text { August } \\\text { September }\end{array}\begin{array}{cc}&\text { Total }\\\text { Total Utility } & \text { Production } \\ \underline{\text { Costs} } & \underline{\text { Volume} } \\ \$ 5,000 & 16,000 \text { units } \\7,000 & 26,000 \text { units } \\8,000 & 32,000 \text { units } \\6,000 & 20,000 \text { units } \\4,000 & 12,000 \text { units } \\10,000 & 36,000 \text { units }\end{array}\end{array}
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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