Brief Exercise 18-4 Bruno Company accumulates the following data concerning a mi

Question

Brief Exercise 18-4 Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Total Driven Cost Miles Total Driven Cost January 8,000$14,120 March 8,510 $15,025 February 7,49013,495 Apri 8,195 14,490 Compute the variable cost per mile using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25.) Variable cost per mile s LINK TO TEXT INTERACTIVE TUTORIAL Compute the fixed cost elements using the high-low method Fixed costs Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

=(15025-13495)/(8510-7490)

=$1.5 per mile

Fixed cost=15025-(1.5*8510)

=$2260

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