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Question - Walton Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 204 boats at a total cost of $170,370 The low point in production occurred in January when it produced 31 boats at a total cost of $51,000.
Required -
a. Use the high-low method to estimate the amount of fixed cost incurred each month by Walton Boat Company.
b. Determine the total estimated cost if 170 boats are made.
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