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Brief Exercise 18-5 a1-a2 Ivanhoe Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 18,700 $39,712 August 33,344 50,016 September 37,512 57,310 October 22,924 40,126 November 41,680 77,629 December 39,596 64,604 (a1) Compute the variable cost per unit using the high-low method.

Respuesta :

Answer:

a, the variable cost per unit using the high-low method is $1.65

Explanation:

a. The computation of the variable cost per unit using the high low method is shown below:

= (HIgh cost - low cost) ÷ (high units - low units)

= ($77,629 - $39,712) ÷ (41,680 units - 18,700 units)

= ($37,917) ÷ (22,980 units)

= $1.65

Hence, the variable cost per unit using the high-low method is $1.65

The same would be considered by applying the above formula so that the correct value could come

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