The following information is available for a company's maintenance cost over the last seven months.MonthJuneJulyAugustSeptemberOctoberNovemberDecemberUnits Produced9018012015021024060Using the high-low method, estimate both the fixed and variable components of its maintenance cost.Change in costChange in volumeTotal cost at the high pointVariable costs at the high point:Volume at the high point:Variable cost per unit producedTotal variable costs at the high pointTotal fixed costsMaintenance Cost$ 4,1906,2604,8805,5706,9507,6403,500Total cost at the low pointVariable costs at the low point:Volume at the low point:Variable cost per unit producedTotal variable costs at the low pointTotal fixed costsHigh-Low method - Calculation of variable cost per unit producedCost at high point minus cost at low pointVolume at high point minus volume at low point

The high-low method is an easy and cost efficiency method for managers to estimate cost behaviour.…

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 Maintenance Cost $ 4,190 6,260 4,880 5,570 6,950 7,640 3,500 Using the high-low method, estimate both the fixed and variable components of its maintenance cost.

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 Maintenance Cost $ 4,190 6,260 4,880 5,570 6,950 7,640 3,500 Using the high-low method, estimate both the fixed and variable components of its maintenance cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is available for a company's maintenance cost over the last seven months. Month Maintenance Hours Maintenance Cost June 11 $4,950 July 17 5,600 August 13 4,600 September 16 5,500 October 22 5,600 November 25 5,800 December 7 3,100 Using the high-low method, estimate both the fixed and variable components of its maintenance cost.
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