The following information is available for a company's maintenance cost over the last seven months. Maintenance Cost Month Units Produced June July 100 190 August 110 d September 140 October 200 November 230 50 $ 4,550 6,530 4,770 5,430 6,750 7,410 3,450 December 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 Cost at highest volume - Cost at lowest volume Highest volume Lowest volume 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: $ 3,960 $ 7,410.00 230 units $ $ $ 3,450.00 Lowest volume 50 units. Variable cost per unit produced $ Total variable costs at lowest volume Total fixed costs $ Variable cost per unit produced = *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
The following information is available for a company's maintenance cost over the last seven months. Maintenance Cost Month Units Produced June July 100 190 August 110 d September 140 October 200 November 230 50 $ 4,550 6,530 4,770 5,430 6,750 7,410 3,450 December 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 Cost at highest volume - Cost at lowest volume Highest volume Lowest volume 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: $ 3,960 $ 7,410.00 230 units $ $ $ 3,450.00 Lowest volume 50 units. Variable cost per unit produced $ Total variable costs at lowest volume Total fixed costs $ Variable cost per unit produced = *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information is available for a company's maintenance cost over the last seven months.
Maintenance Cost
Month
Units Produced
June
July
100
190
August
110
d
September
140
October
200
November
230
50
$ 4,550
6,530
4,770
5,430
6,750
7,410
3,450
December
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
Cost at highest volume - Cost at lowest volume
Highest volume Lowest volume
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:
$
3,960
$
7,410.00
230
units
$
$
$ 3,450.00
Lowest volume
50
units.
Variable cost per unit produced
$
Total variable costs at lowest volume
Total fixed costs
$
Variable cost per unit produced =
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
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