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    High-low method to calculate variable rate of maintenance

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    Month Total Maintenance Cost Production Volume (units)
    January $1,880 1,750 units
    February $1,800 1,500 units
    March $2,200 2,500 units
    April $2,120 2,250 units
    May $2,300 2,750 units

    Using the high-low method, the variable rate for maintenance is:

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    In the high low method, we take the highest values and the lowest ...

    Solution Summary

    The solution explains the use of high low method to calculate the variable cost.