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MURIEL6715
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$6.00 ACCOUNTING HELP

• From Mathematics: General-Mathematics
• Closed, but you can still post tutorials
• Due on Dec. 01, 2008
• Asked on Dec 01, 2008 at 7:49:41PM

Q:

THERE ARE 2 COLUMNS FOR THIS QUESTION THAT I AM ASKING, THANKS


HIGH-LOW-MISSING AMOUNTS. THE FOLLOWING DATA HAVE BEEN EXTRCTED FROM THE RECORDS OF RIDDLE CO:

JULY DECEMBER

PRODUCTION LEVEL 5,000 10,000
VARIABLE COSTS 12,000 ?
FIXED COSTS ? 18,000
MIXED COSTS 10,000 ?
TOTAL COSTS 40,000 59,000






REQUIRED:

A. CALCULATE THE MISSING COSTS
B. CALCULATE THE COST FORMULA FOR MIXED COST USING THE HIGH-LOW METHOD
C. CALCULATE THE TOTAL COST THAT WOULD BE INCURRED FOR THE PRODUCTION OF 8,000 UNITS
D. IDENTIFY THE TWO KEY COST BEHAVIOR ASSUMPTIONS MADE IN THE CALCULATION OF YOUR ANSWER TO PART C.

 

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