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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 100 190 110 140 200 230 50 Maintenance Cost $ 5,850 9,000 6,200 7,250 9,350 10,400 4,100 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 fixed costs
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