Bernard Company shows the following manufacturing costs for the first six months of the year:

Using the high-low method,the total fixed costs are ______.(Round intermediate calculations to two decimal places,and the final calculation to the nearest dollar. )

Question

Bernard Company shows the following manufacturing costs for the first six months of the year:

Using the high-low method,the total fixed costs are ______.(Round intermediate calculations to two decimal places,and the final calculation to the nearest dollar. )

Quizplus · Accepted Answer

D)Variable cost per unit = Change in total cost / Change in volume of activity
Variable cost per unit = (Highest cost - Lowest cost)/ (Highest volume - Lowest volume)
Change in total cost = $45,900 - $31,000 = $14,900
Change in units = 2850 - 1450 = 1400
Variable cost per unit = $10.64
Total fixed costs = Total mixed cost - (Variable Cost per Unit × Number of Units)
Total fixed costs = $45,900 - ($10.64 × 2850)
Total fixed cost = $15,576

Bernard Company Shows the Following Manufacturing Costs for the First