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Cost Estimation Methods in Accounting

The document provides instructions for an accounting exam focused on cost estimation, requiring students to solve problems related to total costs and units produced for two companies, Franz Corp. and Aris Corp. Students must determine variable costs per unit and fixed costs using both the High-Low Method and the Method of Least Squares. Solutions must include supporting computations and be attached to the exam page.

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Mae Polison Mante
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14 views1 page

Cost Estimation Methods in Accounting

The document provides instructions for an accounting exam focused on cost estimation, requiring students to solve problems related to total costs and units produced for two companies, Franz Corp. and Aris Corp. Students must determine variable costs per unit and fixed costs using both the High-Low Method and the Method of Least Squares. Solutions must include supporting computations and be attached to the exam page.

Uploaded by

Mae Polison Mante
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Accounting 13N

Cost Estimation

Instructions : Solve all of the problems with supporting computations, then attach your answers and
solutions in the exam page.

1. Franz, Corp. reported the following operations with the total costs for the first four months of
operations:
Month Units produced Total Costs

June 40 P 4,000
July 50 3,800
August 80 5,000
September 100 7,000

Requirement : Determine the VC/unit and the Fixed Cost using the :
a. High – Low Method
b. Method of Least Squares

2. Aris Corp. reported the following operations with the total costs for the first five months of
operations:
Month Units produced Total Costs

March 30 P 8,000
April 40 12,000
May 100 22,000
June 80 18,000
July 110 20,000

Requirement : Determine the VC/unit and the Fixed Cost using the :
a. High – Low Method
b. Method of Least Squares

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