Quiz on Mixed Cost Analysis

According To High Low Method

High :6,996 $102,243

Low : 6,924 $101,759

High level costs−Low level Costs

1. variable cost per hours= Highlevel hours−Lowlevel hours

102,243−101,759
= 6,996−6,924
= $6.72/ Hours

2. At high level of 6,996 hours:

Total Cost : 102,243
Total Variable Cost = 47,013.12

Total Fixed Cost: 55,229.88

3. Cost equations:
Y= a + bX
Y= $55,229.88+$6.72*X

4. Decision:
Y= $55,229.88+$6.72*X

Y = $55229.88+$6.72*7,500
=105629.88