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Stuart Woodcraft Company manufactures antique wooden cabinets to house modern televisions The Company began operations in January of last year Sidney Myrick the owner asks for your assistance

Stuart Woodcraft Company manufactures antique wooden cabinets to house modern televisions The Company began operations in January of last year Sidney Myrick the owner asks for your assistance

Stuart Woodcraft Company manufactures “antique” wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year:

Required

To understand the department’s cost behavior, you decide to plot the points on graph paper and sketch a total cost line.

(1) Enter the number of units and their costs in increasing order.

Using the high-low method, compute the total cost equation for the preceding data.

(1) Compute the variable cost per unit.

(2) Compute total fixed costs.

(4) Calculate the total cost assuming 2,100 cabinets are made.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Enter the number of units and their costs in increasing order.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Using the high-low method, compute the total cost equation for the preceding data. Compute the variable cost per unit, total fixed costs, and total cost assuming 2,100 cabinets are made. (Round “variable cost per unit” answer to 4 decimal places.)

 

Number of

 

 

 

Month

Cabinets Produced

Total Cost

January

830

 

$

21,000

 

February

3,630

 

 

32,600

 

March

1,900

 

 

29,100

 

April

600

 

 

18,200

 

May

1,620

 

 

28,600

 

June

1,280

 

 

27,700

 

July

1,120

 

 

25,600

 

August

1,780

 

 

31,900

 

September

2,340

 

 

32,900

 

October

3,000

 

 

31,300

 

November

3,250

 

 

33,000

 

December

400

 

 

6,760

 

 

           

 

 
mahesh 17-Mar-2020

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