Wednesday, June 29, 2011

What is the estimated total cost at an operating level of 5,000 units?

ACCOUNTING

Multiple Choice

Presented below are the production data for the first six months of the year for the mixed costs incurred by Gallup Company.



Month Cost Units

January $4,890 4,100

February 4,024 3,200

March 6,480 5,300

April 8,840 7,500

May 5,800 4,800

June 7,336 6,600



Gallup Company uses the high-low method to analyze mixed costs.


What is the estimated total cost at an operating level of 5,000 units?

a. $6,227.20

b. $6,040.00

c. $4,283.20

d. $8,510.00

Click here for the SOLUTION

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