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To Follow Is Information About the Units Produced and Total

Question 146

Essay

To follow is information about the units produced and total manufacturing costs for Darryl Rug Company for the past six months.
 Month  Number of units produced  Total manufacturing costs  January 28,000$21,500 February 31,200$22,500 March 25,200$19,500 April 25,400$20,000 May 30,000$23,000 June 29,000$21,900\begin{array} { | l | c | c | } \hline \text { Month } & \text { Number of units produced } & \text { Total manufacturing costs } \\\hline \text { January } & 28,000 & \$ 21,500 \\\hline \text { February } & 31,200 & \$ 22,500 \\\hline \text { March } & 25,200 & \$ 19,500 \\\hline \text { April } & 25,400 & \$ 20,000 \\\hline \text { May } & 30,000 & \$ 23,000 \\\hline \text { June } & 29,000 & \$ 21,900 \\\hline\end{array} Darryl Rug Company uses the high-low method to estimate its costs.
Answer the following questions:
a.What is the variable cost per unit?
b.What is the monthly fixed manufacturing cost?
c.Write the cost equation that could be used to predict Darryl Rug Company' total manufacturing costs.
c.What will the total monthly manufacturing costs be if the company produces 28,000 units?

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