Blakely Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
|
Units Produced |
Total Cost |
|
|
March |
10,000 |
$18,000 |
|
April |
9,000 |
16,650 |
|
May |
10,500 |
18,750 |
|
June |
8,800 |
16,200 |
|
July |
9,500 |
17,100 |
(a) Compute the variable and fixed cost elements using the high low method.
(b) Estimate the total cost if the company produces 8,500 units.