High-Low Method to Determine Fixed Cost and Variable Rate McGarvey Manufacturing Company had the following 12 months of data on purchasing cost and number of purchase orders. Number of Purchase Month Purchasing Cost Orders January $19,250 370 February 18,060 320 March 18,200 340 April 18,050 410 May 19,345 400 June 19,500 450 July 19,670 460 August 21,420 600 September 19,430 4401 October 20,020 560 November 18,800 470 December 19,340 480 Required: 1. Determine the high point and the low point. Month with high number of purchase orders Month with low number of purchase orders August February 13 2. Calculate the variable rate for purchasing cost based on the number of purchase orders. (Round to the nearest cent.) 12 per purchase order 3. Calculate the fixed monthly cost of purchasing. 15,736 X