Answer Happy

ter 5 Required information [The following information applies to the questions displayed below.) Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold 1 2 3 4 5 6 321,500 166,500 266,500 206,500 291,500 191,500 Change in cost Change in volume Total Cost Month 7 Total cost at the high point Variable costs at the high point $ 159,000 102,750 Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs 207, 100 101,500 203,000 113,500 8 9 10 11 12 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) Units Sold 358,500 271,500 75,700 151, 500 95,500 101,500 Total Cost $ 267,116 153, 250 63,500 132, 125 95,500 80,150 Saved High-Low method - Calculation of variable cost per unit Cost at high point minus cost at low point Volume at high point minus volume at low point High-Low method - Calculation of fixed costs