Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,400 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below.
Type A Type B Type C Total5,000 units $19 $ 54 $19 $ 926,500 units 19 36 18 73If Shum produces 7,000 units, the total cost would be:
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Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs...
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