QS 21-3 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 Units Produced 90 180 120 150 210 240 60 Maintenance Cost $ 5,070 8,130 6,090 7,110 9,150 10,170 4,050 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 $ 6,120 Variable cost per unit produced = Volume at high point minus volume at low point 180 $ Change in cost Change in volume 34.00 10,170.00 Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs 240 unit 34.00 $ $ 4,050.00 60 units Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs $ 34.00 2,040.00 2,010.00