The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 90 180 120 150 210 240 60 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit produced Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Maintenance Cost $4,590 7,110 5,430 6,270 7,950 8,790 3,750 Lowest volume Variable cost per unit produced Total variable costs at lowest volume Total fixed costs High-Low method - Calculation of variable cost per unit produced 0
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 90 180 120 150 210 240 60 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit produced Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Maintenance Cost $4,590 7,110 5,430 6,270 7,950 8,790 3,750 Lowest volume Variable cost per unit produced Total variable costs at lowest volume Total fixed costs High-Low method - Calculation of variable cost per unit produced 0
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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