Reference no: EM132540524

Below are the processing costs of Darnell Products observed over the last 10 months:

Month                        Units Produced        Processing Cost

1                                  7,500              $44,000

2                                  11,000              60,000

3                                13,500                56,000

4                                 5,500                    20,000

5                                   9,000                47,000

6                                   8,500                52,000

7                                    4,500                   24,500

8                                   7,000                    41,000

9                                 11,500                   52,000

10                                 6,000                  41,000

Question a. Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y = a + bx.

Question b. Predict the total processing cost if 22,000 units are produced.