The Smith Company has accumulated the following data concerning a mixed cost. The company is using the units produced as the activity level.
August
10,000 Units Produced
$14,940 Total Cost
September
8,600 Units Produced
$13,450 Total Cost
October
7,100 Units Produced
$11,200 Total Cost
November
7,700 Units Produced
$12,200 Total Cost
December
8,200 Units Produced
$12,660 Total Cost
Using the high-low method, compute the variable and fixed cost elements.
If the company produces 8,000 units, estimate the total cost.
