#17

The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 100 190 110 140 200 230 50 Maintenance Cost $ 5,550 8,430 5,870 6,830 8,750 9,710 3,950 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per unit produced Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced High-Low method - Ca Change in cost Change in volume Total cost Total volume Cost at high point minus cost at low point Cost at low point minus cost at high point Volume at high point minus volume at low point Volume at low point minus volume at high point Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs