[moonkhan209]

Does anyone can help me to find out fixed cost. I was able to find out the variable cost, but very confused about finding the fixed cost. The variable cost per unit is 0.667, while the fixed cost should be 11997, but I came up with 11887, which is wrong.Please help me to find the fixed cost.The question is as follow.
Alden Co.'s monthly sales and cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.
Period
Sales
Total Cost
Period
Sales
Total Cost
1
$
320,000
$
160,000
7
$
360,000
$
252,000
2

170,000

106,250
8

280,000

159,600
3

280,000

218,400
9

90,000

72,000
4

205,000

102,500
10

150,000

131,250
5

310,000

217,000
11

100,000

100,000
6

190,000

114,000
12

110,000

80,300

Requirement 1:
Estimate both the variable costs per sales dollar and the total monthly fixed costs using the highlow method. (Round your answer to 4 decimal places. Omit the "$" sign in your response.)
Variable costs
$
0.6667
Fixed costs

11,988

[Just Looking]

I had looked at this briefly earlier but it is hard to read as shown. I don't see any units listed.

[moonkhan209]

Alden Co.'s monthly sales and cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.

Month Sales Total Cost Month Sales Total Cost
1 $ 325,000 $ 162,500 7 $ 355,000 $ 242,000
2 170,000 106,250 8 275,000 156,750
3 270,000 210,600 9 75,000
60,000
4 210,000 105,000 10 155,000 135,625
5 295,000 206,500 11 99,000 99,000
6 195,000 117,000 12 105,000 76,650

Scatter diagram and cost behavior estimation
Estimate both the variable costs per sales dollar and the total monthly fixed costs using the high-low method.
I already found the variable cost per unit, which is 0.65 per unit, but confused how to find fixed cost. I think it would be better.

[moonkhan209]

Month Sales Total Cost Month Sales Total Cost
1 $ 325,000 $ 162,500 7 $ 355,000 $ 242,000
2 170,000 106,250 8 275,000 156,750
3 270,000 210,600 9 75,000 60,000
4 210,000 105,000 10 155,000 135,625
5 295,000 206,500 11 99,000 99,000
6 195,000 117,000 12 105,000 76,650

[Just Looking]

How did you find the cost per unit? I still don't see where the units are listed. I did an advanced search on here for high low method. There are many questions, but they all involved units.

This is a good explanation:
https://www.askmehelpdesk.com/accoun...od-223233.html

[moonkhan209]

I added all sales cost, and than divided by the Total cost of 12 months, and came up with variable cost per unit.But now confused with Fixed cost.

[Just Looking]

I don't think I can help you on this one. I sent a link to this problem to another poster on this site hoping he can help. He's usually on late at night and into the morning.

[moonkhan209]

No PROBLEM

[Unknown008]

I haven't done those before either, though I think I got the basic understanding about which is which... I made the scatter plot, but there seems to involve a large variable cost... =|

Maybe if I consult my books in the later chapters I'll find something? I'll have a look tonight, that's in about 10 hours.

My scatter: http://p1cture.it/images/g10792f1gag85bgfg5c2.png

[moonkhan209]

So according to your scatter, what is the fixed cost?

[Unknown008]

As I told you, I wouldn't know, I haven't done fixed and variable cost analysis yet. I'll gave to dig into my book to the later chapters to get that. I'm currently at work, though I don't have much to do, but my book is not with me :(

[moonkhan209]

Well, thanks for your help but I would wait for your reply. Thanks

[Unknown008]

Sorry, I've looked up fixed/variable costs but there is only a mention of it in my book, no calculations as to how they are worked out with respect to net sales and net costs :(