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High low method

Inspection costs at one of Krivanek Corporation's factories are listed below:
Units Produced Inspection cost
January 630 $8850
February 615 $8819
March 602 $8760
April 595 $8743
May 688 $9036
June 626 $8866
July 646 $8920
August 670 $8977
September 678 $9013
Management believes that inspection cost is a mixed cosst that depends on units produced.
Using the high low method, the estimate of the variable component of inspection is closest to: $3.15, $0.32, $3.40 or $13.91

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Management believes that inspection cost is a mixed cost that depends on units produced.
Using the high low method, the estimate of the ...

Solution Summary

The solution helps in computing High low method for corporations. The variable components of inspection is determined.

$2.19