Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 90 180 120 150 210 240 60 Total cost 10,170 4,050 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. 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 Maintenance Cost $ 5,070 8,130 6,090 $ 7,110 9,150 +igh-Low method - Calculation of variable cost per unit produced $10,170 38.00 0
image text in transcribed
The following information is available for a company's maintenance cost over the last seven months. Using the high-low method, estimate both the fixed and variable components of its maintenance cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions