QS 18-3 Cost behavior estimation-high-low method LO P1 The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Maintenance Hours Maintenance Cost $ 3,950 5.750 4.550 5. 150 6,350 6.950 3.350 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per maintenance hour Cost at high point minus cost at low point 3.600 Volume at high point minus volume at low point 18 Change in cost Change in volume Variable cost per maintenance hour = $ 200.00 S 6,950.00 24 hours Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per maintenance hour Total variable costs at the high point Total fixed costs 6 hours Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per maintenance hour Total variable costs at the low point Total fixed costs