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    Group C QN 5

    Uploaded by

    kabongerobert7
    Accounting

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    © All Rights Reserved
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    Group C QN 5

    Uploaded by

    kabongerobert7
    7 views2 pages
    Accounting

    Original Title

    GROUP C QN 5

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Accounting

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views2 pages

    Group C QN 5

    Uploaded by

    kabongerobert7
    Accounting

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    GROUP FIVE: COST BEHAVIOR

    A manufacturer has two products termed as Covidex and Glolivex; the following information is
    given for the last six months.

    Covidex Product Glolivex Product


    Units Total cost Units Total cost
    1200 600,000 1200 660,000
    1300 715,000 1300 715,000
    1400 840,000 1400 770,000
    1450 942,500 1450 870,000
    1600 1,120,000 1600 1,120,000

    Require; -

    a) Analyze the two products and determine the cost behavior using graphs showing clearly the
    cost per unit and total costs
    b) Narrate the cost behavior of the above products
    HIGH LOW METHODS

    The following information was extracted from the books of ‘God is able’ for the product called
    ‘Win win Apple’ during the year.

    Months No of units Total costs in $


    January 250 375,000
    February 350 490,000
    March 180 252,000
    April 150 247,500
    May 200 300,000
    June 250 350,000
    July 400 560,000
    August 210 315,000
    September 450 684,000
    October 280 392,000
    November 180 252,000
    December 300 420,000
    Required.

    i. Determine the variable cost per unit of Win win Apple’ during the year using High Low
    Method (HLM)
    ii. Determine the fixed costs using High Low Method
    iii. In case the company is expecting to produce 500 units in January 2022, how much will be
    the total costs

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