Do It Review 182 Part Level Submission Westerville Company a

Do It! Review 18-2 (Part Level Submission) Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level. Units Produced Total Cost March 10,070 $17,244 April 9,100 16,070 May 10,600 18,004 June 8,910 15,570 July 9,660 16,450 Collapse question part (a2) Compute the fixed cost elements using the high-low method. (Round answer to 0 decimal places, e.g. 5,275.) Fixed cost $

Solution

Variable cost per unit = Change in cost/Change in units produced

= (18004-15570)/(10600-8910)

Variable cost per unit = 1.44 per unit

Fixed cost = Total cost-Variable cost

= 18004-(10600*1.44)

Fixed cost = $2740