Question: Question 1: High-Low Method: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Maint. Cost $2100 $2,050 $2,350 $2,000 N. of Units Production 260

Question 1: High-Low Method: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Maint. Cost $2100 $2,050 $2,350 $2,000 N. of Units Production 260 units 275 units 285 units 230 units Step 1: Calculate the variable cost per unit: Formula: (Cost associated with highest volume - Cost associated with lowest volume) /highest volume - lowest volume) Step 2: Calculate total fixed cost: Formula: (variable cost per unit x number of units) Step 3: Calculate total manufacturing maintenance cost : (Number of units 300) Formula : (variable cost per unit x number of units) + Total fixed cost

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