Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information is available for a company's maintenance cost over the last seven months. Month Units Produced June 90 July 180 August 120
The following information is available for a company's maintenance cost over the last seven months. Month Units Produced June 90 July 180 August 120 September 150 October 210 November December 240 60 Maintenance Cost $ 5,450 6,900 5,100 6,000 6,900 8,100) 3,600 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 Total variable costs at the low point Total fixed costs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started