The managerial accountant at Flat Screen Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers to enjoy in the marketplace. The managerial accountant reported that the company uses the high-low method to estimate the costs in the new budget. The managerial accountant reported the following information:
a. Compute the slope of the mixed cost, or the variable cost per unit of activity.
b. Compute the vertical intercept, or the fixed cost component of the mixed cost.
c. What is the mixed cost equation?

Question

The managerial accountant at Flat Screen Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers to enjoy in the marketplace. The managerial accountant reported that the company uses the high-low method to estimate the costs in the new budget. The managerial accountant reported the following information:
  a. Compute the slope of the mixed cost, or the variable cost per unit of activity.
b. Compute the vertical intercept, or the fixed cost component of the mixed cost.
c. What is the mixed cost equation?

Quizplus · Accepted Answer

The Answer of The managerial accountant at Flat Screen Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers to enjoy in the marketplace. The managerial accountant reported that the company uses the high-low method to estimate the costs in the new budget. The managerial accountant reported the following information:
  a. Compute the slope of the mixed cost, or the variable cost per unit of activity.
b. Compute the vertical intercept, or the fixed cost component of the mixed cost.
c. What is the mixed cost equation?

The Managerial Accountant at Flat Screen Manufacturing Reported That the Organization