Clipboard Clipboard Font Font N42 : * EELGIHL Unit 2 Cost Volume Profit Read Chapter https the.inciples accounting.com/managerial cost accounting! Problem 4 High-Low Method Kalizmazoo Truck Rentals has a flat daily fee of $19.95, plus 39 cents per mile. Below is a table of Costs that Kalimazoo has incurred. Cost Miles January 22,500 6,000 February 20,000 5,000 March 19,500 4,000 April 19,000 3,800 May 21,500 5,500 June 23,200 6,200 Calculate the expected overhead cost in July using the High-Iwo Method. 1 Determine the highest and lowest activities: Month Activity High Low Amount 2 Calculate the Variable cost per unit High Low vc per 31 unit Cost Activity per unit Problem 4 Clipboard Font A lignmer N42 X for TK Calculate the expected overhead cost in July using the High Iwo Method. 1 Determine the highest and lowest activities: Month Activity High Low Amount 2 Calculate the Variable cost per unit High Low VC per 31 unit = Cost Activity per unit 3 Calculate fixed Costs Month Fixed Costs = Cost (ve x units) Fixed costs 5*39*8* 4 Calculate Variable costs for July Kalimazoo estimates that July will be a very busy month and expects that it will incur 7000 miles on its truck Variable Cost X Units Total Varible costs = 4 Calculate Total Costs blem. Problema problemsProblem aste BI U - 3 EEE Format Painter Clipboard Font Alignmt 42_ A x vf C D E B F G H Amount 2 Calculate the Variable cost per unit High Low VC per 1 unit= Cost Activity per unit w on 3 Calculate fixed Costs Month Cost Fixed Costs = (vc x units) = Fixed costs 4 Calculate Variable costs for July Kalimazoo estimates that July will be a very busy month and expects that it will incur 7000 miles on its truck Variable Cost X Units Total Varible costs = 4 Calculate Total Costs Variable Cost + Fixed Costs Total Costs