Wildhorse Corp. has collected the following data concerning its maintenance costs for the past 6 months.Total CostUnits Produced$47,14919,420July51,79234,528August59,34538,844September48,15023,738October80,38543,160November66,89841,002DecemberCompute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, eg. 2.25.)Variable cost per unit$Compute the fixed cost elements using the high-low methodFixed costs $lhp19mhoK4insprt scdelet67backde

Question
Asked Oct 21, 2019
Wildhorse Corp. has collected the following data concerning its maintenance costs for the past 6 months.
Total Cost
Units Produced
$47,149
19,420
July
51,792
34,528
August
59,345
38,844
September
48,150
23,738
October
80,385
43,160
November
66,898
41,002
December
Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, eg. 2.25.)
Variable cost per unit
$
Compute the fixed cost elements using the high-low method
Fixed costs $
lhp
19
m
ho
K4
ins
prt sc
delet
6
7
backde
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Wildhorse Corp. has collected the following data concerning its maintenance costs for the past 6 months. Total Cost Units Produced $47,149 19,420 July 51,792 34,528 August 59,345 38,844 September 48,150 23,738 October 80,385 43,160 November 66,898 41,002 December Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, eg. 2.25.) Variable cost per unit $ Compute the fixed cost elements using the high-low method Fixed costs $ lhp 19 m ho K4 ins prt sc delet 6 7 backde

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check_circleExpert Solution
Step 1

Compute the variable cost per unit using the high-low method.

Highest cost -Lowest cost
Variable cost per unit
Highest unit-Lowest unit
S80,385-S47,149
43,160-19,420
=S1.40 per unit
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Highest cost -Lowest cost Variable cost per unit Highest unit-Lowest unit S80,385-S47,149 43,160-19,420 =S1.40 per unit

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Step 2

Compute the fixed cost using the hig...

Fixed cost Total highest cost -(Variable cost per unitx Number of units
=$80,385-($1.40 per unitx 43,160)
S80,385-$60,424
=S19,961
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Fixed cost Total highest cost -(Variable cost per unitx Number of units =$80,385-($1.40 per unitx 43,160) S80,385-$60,424 =S19,961

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