The following information is available for a company’s maintenance cost over the last seven months. Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Month Units Produced Maintenance CostJune . . . . . . . . . . . . . . . 90 $5,450 July . . . . . . . . . . . . . . . . 180 6,900 August . . . . . . . . . . . . . 120 5,100 September . . . . . . . . . . 150 6,000 October . . . . . . . . . . . . 210 6,900 November . . . . . . . . . . 240 8,100 December . . . . . . . . . . . 60 3,600

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter2: Basic Cost Management Concepts
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Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...
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The following information is available for a company’s maintenance cost over the last seven months.
Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Month Units Produced Maintenance CostJune . . . . . . . . . . . . . . . 90 $5,450
July . . . . . . . . . . . . . . . . 180 6,900
August . . . . . . . . . . . . . 120 5,100
September . . . . . . . . . . 150 6,000
October . . . . . . . . . . . . 210 6,900
November . . . . . . . . . . 240 8,100
December . . . . . . . . . . . 60 3,600

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