29) To follow is information about the units produced and total manufacturing costs for Darryl Rug Company for the past six months.
Month
Number of units produced
Total manufacturing costs
January
28,800
$21,500
February
31,200
$22,500
March
25,200
$19,500
April
26,400
$20,000
May
30,800
$23,000
June
29,000
$21,900
Darryl Rug Company uses the high-low method to estimate its costs.
Answer the following questions:
A. What is the variable cost per unit?
B. What is the monthly fixed manufacturing cost?
C. Write the cost equation that could be used to predict Darryl Rug Company's total manufacturing costs.
D. What will the total monthly manufacturing costs be if the company produces 28,000 units?
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