a)Classify each cost as fixed, variable or mixed, using production volume as the cost driver. b)Use the high-low method to separate mixed costs into their fixed and variable components and prepare the cost formula for each of the mixed costs. C. If Green Corridor Company expects a production volume of 30,000 bicycles in the coming quarter,prepare the production cost formula for the quarter and predict the total production cost. Green Corridor Company manufactures and sells a basic low-cost model of mountainbicycles.It has recently generated the following information available regarding productioncosts at various levels of monthly production:Production volume7,000 units10,000 units$ 70,000$100,00080,00030,000120,00012,00044,00021,0003,600Direct materialsDirect labourIndirect materialsSupervisors' salariesDepreciation on plantMaintenance56,00021,000120,00012,00032,00015,0003,600UtilitiesInsurance on plant and equipmentTotal production cost$329,600$410,600

Name: a)Classify each cost as fixed, variable or mixed, using production vol
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Description: a)Classify each cost as fixed, variable or mixed, using production volume as the cost driver. b)Use the high-low method to separate mixed costs into their fixed and variable components and prepare the cost formula for each of the mixed costs. C. If G

The high-low method is a system for segregating variable and fixed costs which are not known in the…

Answered: a) Classify each cost as fixed,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

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Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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Classify each cost as fixed, variable or mixed, using production volume as the cost driver.

Use the high-low method to separate mixed costs into their fixed and variable components and prepare the cost formula for each of the mixed costs.

C. If Green Corridor Company expects a production volume of 30,000 bicycles in the coming quarter,

prepare the production cost formula for the quarter and predict the total production cost.

Green Corridor Company manufactures and sells a basic low-cost model of mountain
bicycles.
It has recently generated the following information available regarding production
costs at various levels of monthly production:
Production volume
7,000 units
10,000 units
$ 70,000
$100,000
80,000
30,000
120,000
12,000
44,000
21,000
3,600
Direct materials
Direct labour
Indirect materials
Supervisors' salaries
Depreciation on plant
Maintenance
56,000
21,000
120,000
12,000
32,000
15,000
3,600
Utilities
Insurance on plant and equipment
Total production cost
$329,600
$410,600

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