Maurice Tutor

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Teaching Since: May 2017
Last Sign in: 402 Weeks Ago, 1 Day Ago
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 13 Aug 2017 My Price 7.00

Archer Company

The following data relating to units shipped and total shipping expense have been assembled by Archer
Company, a wholesaler of large, custom-built air-conditioning units for commercial buildings;

Required:
1. Using the high-low method, estimate a cost formula for shipping expense.
2. The president of the company has no confidence in the high-low method and would like you to check your results using a scattergraph.
a. Prepare a scattergraph, using the data given above. Plot cost on the vertical axis and activity on the horizontal axis. Use a ruler to fit a straight line to your plotted points.
b. Using your scattergraph, estimate the approximate variable cost per unit shipped and the approximate fixed cost per month with the quick-and-dirty method.
3. What factors, other than the number of units shipped, are likely to affect the company’s total shipping expense?Explain.

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Aug 2017 08:08 PM My Price 7.00

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