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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 110 170 130 160 220 250 70 Maintenance Cost $ 4,780 6,400 5,320 6,130 7,750 8,560 3,700 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 0 Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit produced Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Lowest volume Variable cost per unit produced Total variable costs at lowest volume Total fixed costs
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