# 169 mccartney services has a customer web site to take orders answer customer questi 4308111

169) McCartney Services has a customer Web site to take orders, answer customer questions, and address customer complaints. The costs associated with this customer Web site over the past six months are listed below:

 Month Customer Web site costs Number of Web site hits January \$8,960 11,600 February \$8,762 11,270 March \$9,032 11,720 April \$8,942 11,570 May \$8,420 10,700 June \$8,492 10,820

Management at McCartney Services believes that the customer Web site costs are a mixed cost and would like to use the high-low method to estimate their future costs using the number of Web site hits in any given month as the cost driver.

Required:

1.Using the high-low method, estimate the variable cost per Web site hit and the monthly fixed costs associated with the customer Web site.

2.Use the results you computed in Requirement 1 to write the cost equation to estimate the customer Web site expenses for McCartney Services.

3.If McCartney Services expects 9,500 Web site hits for July, what are their anticipated customer Web site costs for July?

170) The following is information about the units produced and the total manufacturing costs for Rose&#39;s Rug Company for the past six months.

 Month Number of units produced Total manufacturing costs January 28,700 \$61,400 February 31,000 \$66,000 March 25,500 \$55,000 April 26,000 \$56,000 May 30,000 \$64,000 June 29,000 \$62,000

Rose&#39;s Rug Company uses the high-low method to estimate its costs. Answer the following questions:

a.What is the variable cost per unit?

b.What is the monthly fixed manufacturing cost?

c.Write the cost equation that could be used to predict Rose&#39;s Rug Company&#39;s total manufacturing costs.

d.What will the total monthly manufacturing costs be if the company produces 28,000 units?