If the production volume were expected to be 22000 units

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During the months of April through September, the following total utility costs were paid at various production volumes:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Month

Total Utility Costs

Total Production Volume

April

$5,000

16,000 units

May

7,000

26,000 units

June

8,000

32,000 units

July

6,000

20,000 units

August

4,000

12,000 units

September

10,000

36,000 units

a. Use the high-low method to calculate the cost formula utility costs.

b. If the production volume were expected to be 22,000 units for the month of November, what amount of total costs would be expected?

Reference no: EM13572129

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