$\begin{array}{ccc}
\text { Month}&\text { Total Maintenance Cost}&\text { Production Volume (units)}\
\text { January } & \$ 1,980 & 1,850 \text { units } \
\text { February } & \$ 1,800 & 1,500 \text { units } \
\text { March } & \$ 2,200 & 2,600 \text { units } \
\text { April } & \$ 2,180 & 2,275 \text { units } \
\text { May } & \$ 2,300 & 2,750 \text { units }
\end{array}$
Using the high-low method, the variable rate for maintenance is:

Question

$\begin{array}{ccc}
\text { Month}&\text { Total Maintenance Cost}&\text { Production Volume (units)}\
\text { January } & \$ 1,980 & 1,850 \text { units } \
\text { February } & \$ 1,800 & 1,500 \text { units } \
\text { March } & \$ 2,200 & 2,600 \text { units } \
\text { April } & \$ 2,180 & 2,275 \text { units } \
\text { May } & \$ 2,300 & 2,750 \text { units }
\end{array}$
 Using the high-low method, the variable rate for maintenance is:

Quizplus · Accepted Answer

The high-low method calculates the variable rate by taking the difference in costs and dividing by the difference in units between the highest and lowest production volumes. Here, the highest cost is $2,300 for 2,750 units, and the lowest cost is $1,800 for 1,500 units. The variable rate is ($2,300 - $1,800) / (2,750 - 1,500) = $500 / 1,250 = $0.40 per unit.

Using the High-Low Method, the Variable Rate for Maintenance Is