Brief Exercise 185 Markowis Corp has collected the following

Brief Exercise 18-5 Markowis Corp. has collected the following data concerning its maintenance costs for the past 6 months Units Total Cost uly August September October November December Produced 21,546 38,304 43,092 26,334 47,880 45,486 $43,092 57,456 65,835 45,486 89,176 74,214 Compute the variable cost per unit using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25.) Variable cost per unit LINK TO TEXT INTERACTIVE TUTORIAL Compute the fixed cost elements using the high-low method Fixed costs Click if you would like to Show Work for this question: Open Show Work

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Cost at highest level of activity          89,176.00 Cost at Lowest level of activity          43,092.00 Highest level of activity          47,880.00 Lowest Level of activity          21,546.00 Variable cost per unit = (89176 - 43092)/ (47880 - 21546) Variable cost per unit = 46084 / 26334 Variable cost per unit = $1.75 Fixed Costs = 89176 - 47880*1.75 Fixed Costs = 89176 - 83790 Fixed Costs = 5,386