The following information is available for a company’s maintenance cost over the last seven months. MonthUnits ProducedMaintenance CostJune 90 $4,190 July 180 6,260 August 120 4,880 September 150 5,570 October 210 6,950 November 240 7,640 December 60 3,500 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 0 Total cost at the high point Variable costs at the high point:Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs

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Description: The following information is available for a company’s maintenance cost over the last seven months. MonthUnits ProducedMaintenance CostJune 90 $4,190 July 180 6,260 August 120 4,880 September 150 5,570 October 210 6,950 November 240 7,640 Decemb

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Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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The following information is available for a company’s maintenance cost over the last seven months.

Month	Units Produced	Maintenance Cost
June		90	$	4,190
July		180		6,260
August		120		4,880
September		150		5,570
October		210		6,950
November		240		7,640
December		60		3,500

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
				0


Total cost at the high point
Variable costs at the high point:
Volume at the high point:
Variable cost per unit produced
Total variable costs at the high point
Total fixed costs

Total cost at the low point
Variable costs at the low point:
Volume at the low point:
Variable cost per unit produced
Total variable costs at the low point
Total fixed costs

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