High-Low Method Accounting | Definition, Formula & Examples
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High-Low Method Accounting | Definition, Formula & Examples
Understand the high-low method in accounting. Learn the formulas for the high-low method. Learn how to compute variable cost per unit, fixed cost, and cost model.
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SOLVED: High-Low MethodZiegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost.The data for various levels of production are as follows:Units ProducedTotal Costs3,000212,8001,000136,8001,960206,260a. Determine the variable cost per unit and the total fixed costVariable cost:(Round to the nearest dollar.)per unTotal fixed cost:b.Based on part a),estimate the total cost for 1,440 units of production.Total cost for1
SOLVED: High-Low MethodZiegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost.The data for various levels of production are as follows:Units ProducedTotal Costs3,000212,8001,000136,8001,960206,260a. Determine the variable cost per unit and the total fixed costVariable cost:(Round to the nearest dollar.)per unTotal fixed cost:b.Based on part a),estimate the total cost for 1,440 units of production.Total cost for1
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