MA3 Problem: Cost Classification & Behavior – XDATA Limited

MA3 Problem: Cost Classification & Behavior – XDATA Limited

The following information was available about supplies cost for the first four months of the year for XDATA Limited.MonthProduction VolumeSupplies CostJanuary 1,400 $ 5,400February 3,200 14,200March 1,200 6,200April 3,000 14,8001.

Using the high-low method, an estimate of supplies cost at 2,000 units of production would be:a.

$9,200 b.

$8,925c.

$13,950d.

$9,400e.

Inappropriate to determine from the information given.2.

Using the same data and the high-low method again, an estimate of supplies cost at 4,000 units of  production would be:a.

$9,200 b.

$8,925c.

$13,950d.

$9,400e.

Inappropriate to determine from the information given