Under High low method the formula of variable cost per unit = (Highest activity cost - lowest activity cost)/(highest activity units - lowest activity units)
= (185100 - 32775)/(21400-5300)
= 152325/16100
= $ 9.4612
but this answer is not matche with the given options.
seems something is wrong in question. it seems like highest activity cost is $ 85100 instead of 185100.
if we put highest activity cost $ 85100 in above formula then
variable cost per unit = (85100-32775)/(21400-5300)
= 52325/16100
= $ 3.25
which is the second option.
Please check with your answer and let me know.
help asap Salles equaled 21,400 units, total onisli > ? 9. tu ed Georgia uses the...
Georgia uses the high-low method of estimating costs. Georgia had total costs of $26,800 at its lowest level of activity, when 5,600 units were sold. When, at its highest level of activity, sales equaled 17,600 units, total costs were $82,600. Georgia would estimate variable cost per unit as: Multiple Choice $4.72 $4.65 $4.79 $4.69
Georgia uses the high-low method of estimating costs. Georgia had total costs of $24,225 at its lowest level of activity, when 5.700 units were sold. When, at its highest level of activity, sales equaled 14,200 units, total costs were $83,300. Georgia would estimate variable cost per unit as: Multiple Choice O $5.40 $6.95 O O O $4.25 O O $5.87
Georgia uses the high-low method of estimating costs. Georgia had total costs of $24,225 at its lowest level of activity, when 5.700 units were sold. When, at its highest level of activity, sales equaled 14,200 units, total costs were $83,300. Georgia would estimate variable cost per unit as: Multiple Choice O $5.40 $6.95 O O O $4.25 O O $5.87
McNeil uses the high-low method of estimating costs. McNeil had total costs of $55,000 at its lowest level of activity, when 3,500 units were sold. When, at its highest level of activity, sales equaled 11,500 units, total costs were $77,000. What would McNeil estimate its total cost to be if sales equaled 8,400 units? Multiple Choice $63,875 $68,475 $100,375 $23,100
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McNeil uses the high-low method of estimating costs. McNeil had total costs of $51,000 at its lowest level of activity, when 5,500 units were sold. When, at its highest level of activity, sales equaled 10,500 units, total costs were $79,000. What would McNeil estimate its total cost to be if sales equaled 8,500 units? Multiple Choice C S67,800 O s47,600 O 571200 O S41700
Ajax uses the high-low method of estimating costs. Ajax had total costs of $46,820 at its lowest level of activity, when 5,500 units were sold. When, at its highest level of activity, sales equaled 18,300 units, total costs were $80,100. Ajax would estimate fixed costs as: Multiple Choice $33,280 $55,120 $126,920 $32,520
Lark, which uses the high-low method, had total costs of $30,490 at its lowest level of activity when 10,500 units were sold. When, at its highest level of activity, sales equaled 16,700 units, total costs were $39,790. Lark would estimate fixed costs as: 0 $9,300 O $54,040 $14,740 O $68,080
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