Unformatted text preview: July 20,500 900,000 August 16,500 700,000 September 10,500 400,000 Required Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity. High low method= 20500-8500/900,000-300000 Variable cost per unit=12000/600000=0.02 $0.02 will be multiplied by any of the activity level Suppose from september 400000*0.02=$8000 Total cost=fixed cost+variable cost Total cost for september=10,500 Vaiable cost=$0.02*400000=$8000 So the fixed cost would be=total cost-variable cost=10,500-8,000=$2,500...
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.
- Winter '11