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S 18-4 (Algo) Measuring costs using high-low method LO P1 he following information is available for a company's maintenance cost over the last seven months. Units Produced 90 180 130 160 220 Month June July August September October November December 250 88 90 Maintenance Cost $ 3,750 4,700 3,950 4,400 5,300 5,600 3, 200

S 18-4 (Algo) Measuring costs using high-low method LO P1 he following information is available for a company's maintenance cost over the last seven months. Units Produced 90 180 130 160 220 Month June July August September October November December 250 88 90 Maintenance Cost $ 3,750 4,700 3,950 4,400 5,300 5,600 3, 200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QS 18-4 (Algo) Measuring costs using high-low method LO P1 The following information is available for a company's maintenance cost over the last seven months. Month Units Produced 90 180 130 160 220 250 90 June July August September October November December Maintenance Cost $ 3,750 4,700 3,950 4,400 5, 300 5, 600 3, 200
Transcribed Image Text:QS 18-4 (Algo) Measuring costs using high-low method LO P1 The following information is available for a company's maintenance cost over the last seven months. Month Units Produced 90 180 130 160 220 250 90 June July August September October November December Maintenance Cost $ 3,750 4,700 3,950 4,400 5, 300 5, 600 3, 200
Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Change in cost Change in volume 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 High-Low method - Calculation of variable cost per unit produced Cost at high point minus cost at low point Volume at high point minus volume at low point 250 units $ 90 units 3,200.00 0.00 0
Transcribed Image Text:Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Change in cost Change in volume 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 High-Low method - Calculation of variable cost per unit produced Cost at high point minus cost at low point Volume at high point minus volume at low point 250 units $ 90 units 3,200.00 0.00 0
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