Question: rooney boat company makes inexpensive aluminum fishing boats production is...
Rooney Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During 2019, the high point in activity occurred in June when it produced 204 boats at a total cost of $168,300. The low point in production occurred in January when it produced 34 boats at a total cost of $51,000.
a. Use the highlow method to estimate the amount of fixed cost incurred each month by Rooney Boat Company.
b. Determine the total estimated cost if 170 boats are made.