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Question 4: Cost structure estimation Fixed or variable? OF OV OF OV Cost account direct labor direct materials depreciation rent administrative staff salaries Production volume was 200 units Amount $4,000 $6,000 $6,000 $7,000 $7,000 OF OV a) Which cost structure estimation method should we use? O high-low method O account classification method b) Classify each cost account above as fixed or variable. Enter your answers in the table above c) Estimate the cost structure parameters: total FC $ unit VC= $ Write down the total cost equation: (e.g., if TC-500+2 volume, enter 500 in the first box and 2 in the second box) d) Predict the total cost of producing 250 units: volume

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MANAGERIAL ACCOUNTING QUESTIONS

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