XGmargin of safety formus+ hittps Help Save & E hapters 19 to 22 Homework Projec
ID: 2398709 • Letter: X
Question
XGmargin of safety formus+ hittps Help Save & E hapters 19 to 22 Homework Project: Due... 0 Che 10 s available for a company's maintenance cost over the last seven months Maintenance Maintenance Cos 3.33 June uly August September October November December $ 4,516 5,958 4,998 5,710 7,150 7,878 3,558 17 13 16 25 Pyint 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 Prev 10 of t8H? Next > pe here to searchExplanation / Answer
Answers
Months
Hours
Cost
High Level
Nov
25
$ 7,870.00
Low Level
December
7
$ 3,550.00
Difference
18
$ 4,320.00
Difference in Cost
$ 4,320.00
Difference in units
18
Variable cost per unit
$ 240.00 [4320 / 18]
Working
High Level
Low Level
A
Total Cost
$ 7,870.00
$ 3,550.00
B
Total Units
25
7
C
Variable cost per unit
$ 240.00
$ 240.00
D = B x C
Total Variable cost
$ 6,000.00
$ 1,680.00
E = A - D
Total Fixed Cost
$ 1,870.00
$ 1,870.00
Total Cost at the high Point
$ 7,870.00
Variable cost at the high Point:
Volume at the high point
25
Variable cost per hour/unit
$ 240.00
Total Variable cost at the high point
$ 6,000.00
Total Fixed Costs
$ 1,870.00
Total cost at the low point
$ 3,550.00
Variable cost at the Low Point:
Volume at Low Point
7
Variable cost per hour/unit
$ 240.00
Total Variable cost at the low point
$ 1,680.00
Total Fixed Costs
$ 1,870.00
Months
Hours
Cost
High Level
Nov
25
$ 7,870.00
Low Level
December
7
$ 3,550.00
Difference
18
$ 4,320.00
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