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What amount of total costs would be expected

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Question - During the months of April through September, the following total utility costs were paid at various production volumes:

Total

Total Utility Production

Month Costs 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: EM132001363

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