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Question

 

 

Total cost @ 5,000 units

 

Total Cost @ 7,000 units

 

Variable Cost per Unit

 

Total Fixed Cost

 

Total Cost @ 6,000 units

 

Direct labor (variable)

 

$60,000

 

$72,000

 

   

Factory supervision (semi-variable)

 

$20,000

 

$22,000

 

   

Factory depreciation (fixed)

 

$18,000

 

$18,000

 

   

Relevant Range and High-Low Method

The following selected data relate to the  major cost categories experienced by Sterling Company at varying levels of  operating volumes. Assuming that all operating volumes are within the relevant  range, calculate the appropriate costs in each column in which blanks appear:

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