Mr. Quik Printers
Mr. Quik Printers documented the number of copies it made for customers as well as total overhead costs for the past five months as follows:
$$\begin{array} { l c c }
& \text { Number of copies } & \text { Total overhead costs } \
\hline \text { October } & 230000 & \$ 7400 \
\text { November } & 240000 & 7500 \
\text { December } & 280000 & 8000 \
\text { January } & 265000 & 7700 \
\text { February } & 248000 & 7550
\end{array}$$
-Using the high/low method,what is the variable cost per unit?
A) $ .012
B) $ .030
C) $33.11
D) $83.33

Question

Mr. Quik Printers
Mr. Quik Printers documented the number of copies it made for customers as well as total overhead costs for the past five months as follows:
$$\begin{array} { l c c } 
& \text { Number of copies } & \text { Total overhead costs } \
\hline \text { October } & 230000 & \$ 7400 \
\text { November } & 240000 & 7500 \
\text { December } & 280000 & 8000 \
\text { January } & 265000 & 7700 \
\text { February } & 248000 & 7550
\end{array}$$
-Using the high/low method,what is the variable cost per unit?
A) $ .012
B) $ .030
C) $33.11
D) $83.33

Quizplus · Accepted Answer

The high/low method involves taking the highest and lowest activity levels and their associated costs to determine the variable cost per unit. The highest activity level is in December with 280,000 copies and costs of $8,000. The lowest is in October with 230,000 copies and costs of $7,400. The difference in activity levels is 50,000 copies (280,000 - 230,000), and the difference in costs is $600 ($8,000 - $7,400). The variable cost per unit is calculated as the difference in costs divided by the difference in activity levels, which is $600 / 50,000 = $0.012 per copy.

Mr Quik Printers Mr -Using the High/low Method,what Is the Variable Cost Per Unit

Mr Quik Printers
Mr -Using the High/low Method,what Is the Variable Cost Per Unit