QUESTION 2Observation of the four previous months has identified the following total cost data for production costs within Danny Dog ple.Activity levelTotal cost10,00040,00060,00030,000£28,000£70,000E98,000E56,000Using the H-Low method of analysis, the variable production cost per unit has been established as £1.4O. What is the total fixedproduction cost?Oa. E15,000b. £20,000C £14,000Od. £45,000

High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…

Observation of the four previous months has identified the following total cost data for production costs within Danny Dog plc. Activity level 10,000 40,000 60,000 30,000 Using the Hi-Low method of analysis, the variable production cost per unit has been established as £1.40. What is the total fixed production cost? Oa K15,000 Ob. £20,000 OC £14,000 Od. E45,000 Total cost £28,000 £70,000 E98.000 E56,000

Observation of the four previous months has identified the following total cost data for production costs within Danny Dog plc. Activity level 10,000 40,000 60,000 30,000 Using the Hi-Low method of analysis, the variable production cost per unit has been established as £1.40. What is the total fixed production cost? Oa K15,000 Ob. £20,000 OC £14,000 Od. E45,000 Total cost £28,000 £70,000 E98.000 E56,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1BE: High-low method The manufacturing costs of Rosenthal Industries for the first three months of the...

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