EXERCISE 5-3 (30 MINUTES)

2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
2.

Variable

Cost per

Unit Fixed Cost

per Month

Quick-and-dirty scattergraph method... $200 $1,000 High-low method ... $250 $700 Least-squares regression method ... $218 $911 Note that the high-low method gives estimates that are quite different from the estimates provided by least-squares regression.