please solve etermin of the e the fixed e follow d and varia

please solve

etermin of the e the fixed e follow d and variable costs usi metho the High-Low psn Months January February March April May June July aintenance Costs (S)Mac 27,000 1,000 800 1,100 1,400 2,700 ce Costs (SMachine H 30,000 41,000 67,000 36,000 45,000 August 35,000 September 48,000 1,200 1,700 1,400 October 90,000 November 40,000 December 59,000 1,800 4,300 1,350 2,300

Solution

Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

=(90000-21000)/(4300-800)

=$19.71 per hour(Approx)

Fixed cost=90000-(4300*19.71)

=$5228.57(Approx)

[Please note that intermediate calculations have not been rounded off].