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# Variable cost using the High- Low Method

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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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#### Solution Preview

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