Question

Using the following data and the High Low method, calculate the fol D Variable Cost per unit for February is $ 3) Total Variable Cost for April is $ 3) Total Fixed Cost for June is $_ Jan Feb Mar Apr May Jun Machine Hours 320 390 290 260 330 380 Total Electric Cost $2,440 $ 2,930 $2,230 $2,020 $ 2,510 $2,860

Answer 1

Answers

• [1] Variable cost per unit = $ 7.00 per unit
• [2] Total Variable cost for April = 260 hours x $ 7 = $ 1,820
• [3] Total Fixed cost for June = $ 200
• High Low working for above answers

	Months	Units	Cost
High Level	Feb	390	$                     2,930.00
Low Level	Apr	260	$                     2,020.00
Difference		130	$                         910.00
A	Difference in Cost		$                         910.00
B	Difference in units		130
C = A/B	Variable cost per unit		$                           7.000
Working		High Level	Low Level
A	Total Cost	$                   2,930.00	$                     2,020.00
B	Total Units	390	260
C	Variable cost per unit	$                           7.00	$                             7.00
D = B x C	Total Variable cost	$                   2,730.00	$                     1,820.00
E = A - D	Total Fixed Cost	$                       200.00	$                         200.00