QS 18-4 (Algo) Measuring costs using high-low method LO P1 The following Information is available for a company's maintenance cost over the last seven months. Month Units Produced June July 90 180 August 120 September 150 October 210 November 240 60 Maintenance Cost $ 4,190 6,260 4,880 5,570 6,950 7,640 3,500 December Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Answer is complete but not entirely correct. High-Low method - Calculation of variable cost per unit produced Change in cost Change in volume Cost at high point minus cost at low point Volume at high point minus volume at low point 4,140 180 Variable cost per unit produced = $ 23.00 Total cost at the high point Variable costs at the high point: Volume at the high point: $ 7,640.00 230 units Variable cost per unit produced S 23.00 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: 5,290.00 $ 2,350.00 $ 3,500.00 50 units Variable cost per unit produced S 23.00 Total variable costs at the low point Total fixed costs 1,150.00 $ 2,350.00