The following information is available for a company's maintenance cost over the last seven months. Month Units Produced June 110 July 170 August 130 September 160 October 220 November 250 December 70 Maintenance Cost $ 4,780 6,400 5,320 6,130 7,750 8,560 3,700 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
The following information is available for a company's maintenance cost over the last seven months. Month Units Produced June 110 July 170 August 130 September 160 October 220 November 250 December 70 Maintenance Cost $ 4,780 6,400 5,320 6,130 7,750 8,560 3,700 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
110
July
170
August
130
September
160
October
220
November
December
250
70
$ 4,780
6,400
5,320
6,130
7,750
8,560
3,700
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
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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