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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
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