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Variable cost using the High- Low Method

Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:

January February March April May June July
Number of rooms cleaned 250 160 200 150 270 170 260
Cleaning cost $6,450 $4,060 $5,100 $4,100 $7,000 $4,200 $6,530

How much are estimated monthly variable costs using the high-low method?

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The answer is in the attached excel file:

Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:

January February March April May June July
Number of rooms cleaned 250 160 200 150 270 170 260
Cleaning cost $6,450 $4,060 $5,100 $4,100 $7,000 $4,200 $6,530

How much are estimated monthly variable costs using the high-low method?

Month Number of rooms cleaned Cleaning cost
January 250 $6,450 ...

Solution Summary

Calculates fixed and variable cost using the high-low method.

$2.19