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

Venus Company uses the high-low method to analyze mixed costs.
What is the estimated total cost at an operating level of 6,300 units?
A)$9,450
B)$8,179
C)$6,867
D)$7,875

Question

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

Venus Company uses the high-low method to analyze mixed costs.
What is the estimated total cost at an operating level of 6,300 units?
A)$9,450 
B)$8,179 
C)$6,867 
D)$7,875

Quizplus · Accepted Answer

b = ($10,250 − $4,800)/ (8,200 − 3,200)= $1.09
$10,250 = a + $1.09 × 8,200
a = $1,312
Cost function is: Y = $1,312 + $1.09X
Y = $1,312 + $1.09 × 6,300 = $8,179

Presented Below Are the Production Data for the First Six