Maintenance costs at planet corporation factory are listed, Accounting Basics

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Maintenance costs at planet corporation factory are listed

Problem

Maintenance costs at Planet Corporation factory are listed below:

	Machine-Hours	Maintenance Cost
April	3,135	$48,340
May	3,095	$47,993
June	3,133	$48,345
July	3,157	$48,548
September	3,065	$47,733
October	3,084	$47,880
November	3,125	$48,247
December	3,098	$48,014

Management believes that maintenance cost is a mixed cost that depends on machine-hours.

Use the high-low method to estimate the variable and fixed components of this cost.

What is the variable cost per unit?
What is the fixed cost?

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