Variable cost per unit = Change in cost ÷ Change in activity = $550 ÷ 300 units = $1.83 per unit AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Learning Objective: 02-04 Analyze a mixed cost using a scattergraph plot and the high-low method. Level: 1 Easy 85. The following data pertains to activity and maintenance costs for two recent years: Using the high-low method, the cost formula for maintenance would be: Variable cost per unit = Change in cost ÷ Change in activity = $3,000 ÷ 4,000 units = $0.75 per unit Fixed cost = Total cost - Variable cost element = $15,000 - ($0.75 per unit × 12,000 units) = $15,000 - $9,000 = $6,000
Variable cost per unit = Change in cost ÷ Change in activity = $550 ÷ 300 units = $1.83 per unit AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Learning Objective: 02-04 Analyze a mixed cost using a scattergraph plot and the high-low method. Level: 1 Easy 85. The following data pertains to activity and maintenance costs for two recent years: Using the high-low method, the cost formula for maintenance would be: Variable cost per unit = Change in cost ÷ Change in activity = $3,000 ÷ 4,000 units = $0.75 per unit Fixed cost = Total cost - Variable cost element = $15,000 - ($0.75 per unit × 12,000 units) = $15,000 - $9,000 = $6,000
Test%20Bank%20for%20Managerial%20Accounting%20for%20Managers%203rd%20Edition%20Noreen,%20Brewer,%20Garrison.docx