High-low method
The following information is available regarding the total repair costs of Alexander Design Company for six months of 2012:

(a) Using the high-low method, compute the following:
(1) The variable element of repair cost per unit of production: $__________________ per unit
(2) The fixed element of the monthly maintenance cost: $___________________ (b) Use the cost relationship determined in part a to estimate the total maintenance cost for July 2012, given that production is scheduled for 2,300 units. $____________________

Question

High-low method
The following information is available regarding the total repair costs of Alexander Design Company for six months of 2012:

(a) Using the high-low method, compute the following:
(1) The variable element of repair cost per unit of production: $__________________ per unit
(2) The fixed element of the monthly maintenance cost: $___________________ (b) Use the cost relationship determined in part a to estimate the total maintenance cost for July 2012, given that production is scheduled for 2,300 units. $____________________

Quizplus · Accepted Answer

The Answer of High-low method
The following information is available regarding the total repair costs of Alexander Design Company for six months of 2012:

(a) Using the high-low method, compute the following:
(1) The variable element of repair cost per unit of production: $__________________ per unit
(2) The fixed element of the monthly maintenance cost: $___________________ (b) Use the cost relationship determined in part a to estimate the total maintenance cost for July 2012, given that production is scheduled for 2,300 units. $____________________

High-Low Method The Following Information Is Available Regarding the Total Repair Costs