Relevant Range and High-Low Method
The following selected data relate to the major cost categories
experienced by Shaw Company at varying levels of operating volumes.
Assuming that all operating volumes are within the relevant range,
calculate the appropriate costs in each column in which blanks
appear:
Total Cost (@ 3,000 Units) | Total Cost (@ 4,000 units) | Variable Cost per Unit | Total Fixed Cost | Total Cost (@ 5,000 units) | |
---|---|---|---|---|---|
Direct labor (variable) | $63,000 | $84,000 | $Answer | $Answer | $Answer |
Factory supervision (semi-variable) | 50,000 | 65,000 | $Answer | $Answer | $Answer |
Factory depreciation (fixed) | 33,000 | 33,000 | $Answer | $Answer | $Answer |
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