CALCULATOR HES dustries has collected the following monthly expense data for use

Question

CALCULATOR HES dustries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Maintenance Costs Total Machine Hours Month January February March April May June $2,590 2,890 3,490 4,390 3,090 5,510 330 380 530 660 530 730 Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g. 12.250.) Variable cost per machine hour LINK TO TEXT LINK TO TEXT VIDEO: APPLIED SKILLS Determine the fixed cost components using the high-low method. (Round answer to O decimal places e.g. 2,520.) Total fixed costs s

Explanation / Answer

Variable cost per machine hour = (5510-2590)/(730-330) = 7.30 per machine hour

Fixed cost = Total cost-variable cost

= 5510-(730*7.3)

FIxed cost = 181

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