The following Information is avallable for a company's maintenance cost over the last seven months. Month Units Produced Maintenance Cost June 100 %24 July August September October 3,95e 5,390 4,11e 4,59e 5,55e 6,e30 3,150 190 110 140 200 November 230 December 50 Using the high-low method, estimate both the fixed and variable components of Its maintenance cost. High-Low method - Calculation of variable cost per maintenance hour 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 lovw point Variable cost per unit produced Total variable costs at the low point Total fixed costs
The following Information is avallable for a company's maintenance cost over the last seven months. Month Units Produced Maintenance Cost June 100 %24 July August September October 3,95e 5,390 4,11e 4,59e 5,55e 6,e30 3,150 190 110 140 200 November 230 December 50 Using the high-low method, estimate both the fixed and variable components of Its maintenance cost. High-Low method - Calculation of variable cost per maintenance hour 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 lovw point Variable cost per unit produced Total variable costs at the low point Total fixed costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the high-low method, estimate both the fixed and variable components of its maintenance cost.
Transcribed Image Text:The following Information is available for a company's malntenance cost over the last seven months.
Maintenance Cost
24
Month
Units Produced
June
100
July
August
September
October
November
3,950
5,390
4,11e
4,590
5,550
6,030
3,150
190
110
140
200
230
December
50
Using the high-low method, estimate both the fixed and varlable components of Its maintenance cost.
High-Low method - Calculation of variable cost per maintenance hour
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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