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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 9e 180 13e 16e Maintenance cost $ 3,750 4,700 3,950 4,400 5,300 5,600 25e 90 3,2ee 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 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 foxed costs
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