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

Required:
Using the high-low method determine the forecasted cost for July if the number of units produced is expected to be 5,000.

Question

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

Required:
Using the high-low method determine the forecasted cost for July if the number of units produced is expected to be 5,000.

Quizplus · Accepted Answer

$8,840 = a + ($1.12 × 7,500)
a = $440
Cost function is y = $440 + $1.12x
y = $440 + ($1.12 × 5,000 units) = $6,040
 $36,880

Presented Below Are the Production Data for the First Six