Reference no: EM132794471
The cost accountant of SINGTO CORPORATION determined that material cost is a mixed cost with units produced as the appropriate cost driver for the variable cost within the relevant range of 6,000 to 16,500 units produced.
Data for the corporation's six departments are as follows:
Department A
Material Cost=P 357,240.00
Unit Cost=13,200.00
Department B
Material Cost=313,900.00
Units Cost=11,000.00
Department C
Material Cost=390,730.00
Unit Cost=14,900.00
Department D
Material Cost=272,530.00
Unit Cost=8,900.00
Department E
Material Cost=363,150.00
Unit Cost=13,500.00
Department F
Material Cost=412,400.00
Unit Cost=16,000.00
Problem A. Using high-low method, use a cost formula for Material Cost following the format Y = mx + b, where y is the total material cost and x is the unit produced. =
Problem B. Determine the total variable material cost at 14,500 units. =
Problem C. Determine the total material cost at 15,400 units. =
Problem D. Determine the total material cost at 17,000 units