Question

Return to Blackboard JS Weygandt, Managerial Accounting, Fifth Canadian Edition Help System Announcements 5 Westerville Corp. has collected the following data concerning its maintenance costs for the past six months: Units Produced Total Cost July 17,300 $31,620 August 32,900 48,000 September 36,100 55,100 Octobes 22,400 39,000 November 40,300 65,200 December 38,200 62,300 sidy (ai) Your answer is correct. Calculate the variable cost per unit using the high-low method. (Round variable cost per unit to 2 decimal places, e.g. 12.25 Variable cost 1.46 per unit SHOW SOLUTION LINK TO TEXT (2) Calculate the fixed cost element using the high-low method. Fixed cost

Answer 1

Variable cost per unit = $1.46 Fixed cost = $6,362 Calculate the variable cost per unit the high-low method: Variable cost High level cost - Low level cost High level activity - Low level activity $65,200 - $31,620 40,300 - 17,300 $1.46 Thus, the variable cost per unit is $1.46. Calculate the fixed cost under high-low method: Fixed cost = Lowest activity cost - Variable cost per unit x Lowest activity units) = $31.620 - ($1.46 - 17.300) = $6,362 Thus, the fixed cost is $6,362. Please take your valuable time and rate the solution as per your convenience.