Question

Check my work The following information is available for a company's maintenance cost over the last seven months. Month July August September October November December Maintenance Hours Maintenance Cont 4,240 5.500 4,660 5,290 6.550 7,180 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 high point Variable costs at the high point Volume at the high point Variable cost per maintenance hour Total variable costs at the Nigh point < Prev 1 of 6 !!! Next >

Answer 1

Change in cost	Cost at high point minus cost at low point	3780	Variable cost per unit =	210
Change in volume	Volume at high point minus volume at low point	18

Total costs at the high point		7180
Variable costs at high point:
Volume at the high point	25
Variable cost per unit	210
Total variable costs at the high point		5250
Total fixed costs		1930
Total costs at the low point		3400
Variable costs at the low point:
Volume at the low point	7
Variable cost per unit	210
Total variable costs at the high point		1470
Total fixed costs		1930