K Christel, LLP, accumulates the following data concerning a mixed cost, using units produced as the activity level.
|
|
Units Produced |
Total Cost |
|
March |
9,800 |
$ 14,740 |
|
April |
8,500 |
13,250 |
|
May |
7,000 |
11,100 |
|
June |
7,600 |
12,000 |
|
July |
8,100 |
12,460 |
(a)Compute the variable and fixed cost elements using the high low method.
(b)Estimate the total cost if the company produces 6,000 units.