To Follow Is Information About the Units Produced and Total

question 313

Essay

To follow is information about the units produced and total manufacturing costs for Darryl Rug Company for the past six months.

Darryl Rug Company uses the high-low method to estimate its costs.
Answer the following questions:
1.What is the variable cost per unit?
2.What is the monthly fixed manufacturing cost?
3.Write the cost equation that could be used to predict Darryl Rug Company's total manufacturing costs.
4.What will the total monthly manufacturing costs be if the company produces 28,000 units?

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Definitions:

Cost Of Goods Sold

An accounting term that refers to the direct costs attributable to the production of the goods sold by a company.

Territorial Evaluation

The assessment of geographical regions within a market for the purpose of business development and strategic planning.

Performance Standards

Established expectations or benchmarks that define the quality or level of performance required from a task or employee.

Qualitative Quotas

Targets or goals set based on qualitative measures such as customer satisfaction or salesperson skill improvement, rather than purely numerical metrics.