Using the high-low method and the information below,compute the monthly variable cost per telephone hour for SKP Corporation. $$\begin{array} { l c c }
\text { Month } & \text { TelephoneHours Used } & \text { Telephone Expenses } \
\text { April } & 100 & \$ 4,500 \
\text { May } & 110 & 4,800 \
\text { June } & 150 & 5,400
\end{array}$$

Question

Using the high-low method and the information below,compute the monthly variable cost per telephone hour for SKP Corporation. $$\begin{array} { l c c } 
\text { Month } & \text { TelephoneHours Used } & \text { Telephone Expenses } \
\text { April } & 100 & \$ 4,500 \
\text { May } & 110 & 4,800 \
\text { June } & 150 & 5,400
\end{array}$$

Quizplus · Accepted Answer

The high-low method uses the highest and lowest activity levels to estimate variable costs. The difference in cost between June and April is $900 ($5,400 - $4,500) for a difference of 50 hours (150 - 100). Thus, the variable cost per hour is $900 / 50 = $18.00.

Using the High-Low Method and the Information Below,compute the Monthly