Question

The Aust Corporation has gathered the following data on its copy machine costs for the first eight months of the year. Month January February March April May June July August Number of Copies 46,000 42,000 58,000 64,000 57,000 62,000 68,000 71,000 Total Copy Cost $4,600 $4,400 $5,300 $6,300 $5,000 $5,800 $6,500 $7,300

Answer 1

Variable cost per copy under high-low method:

$Variable Cost per Copy = \frac{Highest Activity Cost - Lowest Activity Cost}{Highest Activity Unit - Lowest Activity Unit}$

$Variable Cost per Copy = \frac{\$7,300 - \$4,400}{71,000 - 42,000}$

VariableCostper Copy = $2,900 29,000

Fixed cost per month

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