Machine Hours and Utility Costs for Automotive Inc

Month Machine Hours Utility Costs

January 2,500 ₱35,700
February 2,900 ₱41,000
March 1,900 ₱28,000
April 3,100 ₱45,000
May 3,800 ₱56,400
June 3,300 ₱41,000
July 4,100 ₱49,200
August 3,500 ₱45,500
September 2,000 ₱31,000
October 3,700 ₱50,200
November 4,500 ₱65,000
December 4,100 ₱52,500

MACHINE HOURS AND UTILITY COSTS FOR

AUTOMOTIVE INC
₱80,000 5,000
4,000
HOURS

₱60,000
COSTS

₱40,000 3,000
2,000
₱20,000 1,000
₱0 0

MONTHS

Machine Hours Utlity Costs

Machine Hours and Utility Costs for Automotive Inc.

Month Machine Hours Utility Costs
November 4,500 ₱65,000
March 1,900 ₱28,000
Difference 2,600 ₱37,000
Variable Cost(VC) per unit ₱14.23
Highest Level Variable Cost ₱64,038.46
 Lowest Level Variable Cost ₱27,038.46
Highest Level Fixed Cost ₱961.54
Lowest Level Fixed Cost ₱961.54

The data above shows the separation of mixed cost using high-low method.
The result will be computed by determining the highest and lowest cost of
machine hours and subtracting these two (2) value to determine their
gap/difference. After that the difference of the utility cost will be divided to
the difference of the machine hours to get the Variable Cost per unit. In
order to get the fixed cost at each level of activity, Variable Cost per unit
should be multiplied to the highest and lowest cost. The graph above shows
the companies activity and helps us determined whether it is gaining
profit/loss.

LANA,CHABELITA BSBA2A COSTING&PRICING