Sunland Company used high and low data from June and July to determine its variable cost of $12 per unit. Additional informationfollows:MonthJuneJulyUnitsproduced1700O $12751500Totalcosts$21600O $19200O $30200$31400If the company produces 1600 units in August, what is its expected total cost?29000

Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Sunland Company used high and low data from June and July to determine its variable cost of $12 per u follows: Month June July Units produced 1700 1500 Total costs $1275 $21600 O $19200 O $30200 $31400 29000 If the company produces 1600 units in August, what is its expected total cost?

Sunland Company used high and low data from June and July to determine its variable cost of $12 per u follows: Month June July Units produced 1700 1500 Total costs $1275 $21600 O $19200 O $30200 $31400 29000 If the company produces 1600 units in August, what is its expected total cost?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Question

Sunland Company used high and low data from June and July to determine its variable cost of $12 per unit. Additional information
follows:
Month
June
July
Units
produced
1700
O $1275
1500
Total
costs
$21600
O $19200
O $30200
$31400
If the company produces 1600 units in August, what is its expected total cost?
29000

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