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Compute the variable and fixed elements of moon total costs

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Reference no: EM133159533

Question - Moon Company makes product S1 and has the following costs at the given levels of production:

Month

Units Produced

Total Costs

January

150

120,000

February

225

135,000

March

300

150,000

April

375

165,000

May

450

180,000

June

525

195,000

Required -

1. Use the high-low method to compute the variable and fixed elements of Moon's total costs.

2. Estimate the total cost of making 750 items of S1, assuming that total fixed costs and the variable cost rate do not change.

Reference no: EM133159533

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