Reference no: EM132540101

Below are the processing costs of Darnell Products observed over the last 10 months:

Month                        Units Produced                      Processing Cost

1                                  7,500                             $44,000

2                                      11,000                         52,000

3                                         15,000                     59,000

4                                          5,500                       38,000

5                                             9,000                   47,000

6                                            8,500                    52,000

7                                              2,500                 28,000

8                                                7,000                 41,000

9                                                  11,500              52,000

10                                                  6,000              41,000

Question a. Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y = a + bx.

Question b. Predict the total processing cost if 22,000 units are produced.