C.) Estimate the total cost if the company produces 8,100 units. (Round answer t

Question

C.) Estimate the total cost if the company produces 8,100 units. (Round answer to 0 decimal places, e.g. 5,275.)

Total cost to produce 8,100 units xC Chegg Study | Guided So CSecure https://edugen.wileyplus.com/edugen/lti/main.uni WileyPLUS Assignment Assignment> Open Assignment CALCULATOR PRINTER VERSION RACK NFXT Brief Fxercise18-4 Boef Exercise5 Brief Exercise 18 Bief Exercise 18 2 Do Itl Review 18-2 Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level March Aprll May June July Units Produced 10,140 9,140 10,600 8,930 9,650 Total Cost $14,722 13,385 15,472 13,435 14,375 18-1 Brief Fxercise 1-12 E Do It Beview8 o It! Revlew 18 Compute the variable cost per unit using the high-low method. (Round variable cost per unit to 2 decimal places e.g. 12.25.) Variable cost per unit s Fxercise 18-3 Exercise 18-4 Compute the fixed cost elements using the hlgh-low method. (Round answer to o declmal places, e.g. 5,275.) Exercise 18-15 Fixed cost Review Score Review R 6/11/2018 2

Explanation / Answer

We have,
at highest activity: x2 = 10600; y2 = $15472
at lowest activity: x1 = 8930; y1 = $13435

Variable Cost per Unit = ($15472 ? $13435) ÷ (10600 ? 8930) = $1.22 per unit
Total Fixed Cost = $15472 ? ($1.22 × 10600) = $2543

C. Total Cost to Produce 8100 Units

Total Cost = 8100 * 1.22 + $2543 = $12423

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