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ACC 206 Week 3 Chapter 5 Exercise 1 High-low method

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Chapter 5 Exercise 1: High-low method
The following cost data pertain to 20X6 operations of Heritage Products: 
Quarter 1            Quarter 2       Quarter 3       Quarter 4 
Shipping costs 
$58,200 
$58,620 
$60,125 
$59,400 
Orders shipped 
120
140
175
150
 
The company uses the high-low method to analyze costs. 
  1. a.       Determine the variable cost per order shipped. 
  2. b.      Determine the fixed shipping costs per quarter. 
If present cost behavior patterns continue, determine total shipping costs for 20X7 if activity amounts to 570 orders. 

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