The following information is available for a company's maintenance cost over the last seven months. Units Produced 100 160 120 Month June July August
The following information is available for a company's maintenance cost over the last seven months. Units Produced 100 160 120 Month June July August September October November December 150 210 240 60 Change in cost Change in volume Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per maintenance hour Cost at high point minus cost at low point Volume at high point minus volume at low point 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 Maintenance Cost $ 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 4,550 6,530 4,770 5,430 6,750 7,410 3,450
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