Question

Month	Packing Costs	No. of Orders	Weight	Fragile Items
1	$            45,000	11,200	24,640	1,120
2	58,000	14,000	31,220	1,400
3	39,000	10,500	18,000	1,000
4	35,600	9,000	19,350	850
5	90,000	21,000	46,200	4,000
6	126,000	31,000	64,000	5,500
7	90,600	20,000	60,000	1,800
8	63,000	15,000	40,000	750
9	79,000	16,000	59,000	1,500
10	155,000	40,000	88,000	2,500
11	450,000	113,500	249,700	11,800
12	640,000	150,000	390,000	14,000
13	41,000	10,000	23,000	900
14	54,000	14,000	29,400	890
15	58,000	15,000	30,000	1,500
16	58,090	14,500	31,900	1,340
17	80,110	18,000	50,000	3,000
18	123,000	30,000	75,000	2,000
19	108,000	27,000	63,450	1,900
20	76,000	18,000	41,400	1,430
Totals	$       2,469,400	597,700	1,434,260	59,180

1)

Variable Cost per Order:
	Cost	No. of Orders
High
Low
Difference
Variable Cost per order
Fixed Cost:
Using High Activity
Using Low Activity
Cost Equation:	Y =

2)

PART 4 Cost Estimate given activity data:
	Estimated
	Activity
No. of Orders	26,000	Can only use this
Weight of Orders	57,000
No of Fragile Items	900
Cost Estimate		<<< Solve Here

Round to 2 decimal places

Answer 1

1)
Variable Cost per Order:
	Cost	No. of Orders
High	640000	150000
Low	35600	9000
Difference	604400	141000
Variable Cost per order		$                4.29
Fixed Cost:
Using High Activity	$                   -2,978.72
Using Low Activity	$                   -2,978.72
Cost Equation:	Y = -$2978.72+$4.29*x
2)
PART 4 Cost Estimate given activity data:
	Estimated
	Activity
No. of Orders	26,000	Can only use this
Weight of Orders	57,000
No of Fragile Items	900
Cost Estimate		$     1,08,561.28