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 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. 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: Maintenance Cost $4,590 7,110 5,430 6,270 7,950 8,790 3,750 Lowest volume Variable cost per unit produced Total variable costs at lowest volume Total fixed costs High-Low method - Calculation of variable cost per unit produced 0

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 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. 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: Maintenance Cost $4,590 7,110 5,430 6,270 7,950 8,790 3,750 Lowest volume Variable cost per unit produced Total variable costs at lowest volume Total fixed costs High-Low method - Calculation of variable cost per unit produced 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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
Using the high-low method, estimate both the fixed and variable components of its maintenance cost.
Maintenance Cost
$ 4,590
7,110
5,430
6,270
7,950
8,790
3,750
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
High-Low method - Calculation of variable cost per unit produced
0

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