Presented Below Are the Production Data for the First Six

question 54

Essay

Presented below are the production data for the first six months of the year for the mixed costs incurred by Crew Industries.
$$\begin{array} { l r r } \text { Month } & \text { Cost } & \text { Units } \\\text { January } & \$ 4,076 & 3,050 \\\text { February } & 4,012 & 3,000 \\\text { March } & 5,560 & 4,270 \\\text { April } & 7,840 & 6,500 \\\text { May } & 5,100 & 3,700 \\\text { June } & 6,780 & 5,600\end{array}$$
Crew Industries uses the high-low method to analyze mixed costs.
(1)How would the cost function be stated? (Round results to the nearest cent. )
(2)What is the estimated total cost at an operating level of 5,000 units?

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Definitions:

Units Produced

The total quantity of items manufactured during a specific period.

Units On Hand

The total number of units of inventory that a company physically has in its possession at a specific time.

Units

The measurement or quantity of something, often used in the context of production volume or inventory in business.

Factory Overhead

All manufacturing costs that are not directly associated with the production of goods, including indirect materials, labor, and other expenses.