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What is Management Accounting: High-Low Method Guide about?

Here are the key steps and calculations to solve this problem using the high-low method: 1) Calculate the variable cost per unit from the given data: Variable cost per unit = (Total cost at high activity - Total cost at low activity) / (High activity units - Low activity units) = (Rs.274,000 - Rs.204,000) / (15,000 - 8,000) = Rs.10 per unit 2) Calculate the fixed cost from the lowest activity level data: Fixed cost = Total cost at lowest level - (Lowest activity units x Variable cost per unit)

Author

Sameer Faisal

Language

EN