Compute the variable maintenance cost per unit

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Reference no: EM133116852

Question - Los Angeles Company wants to conduct an analysis of the behavior of the maintenance cost of its factory equipment in relation to the number of units produced using such equipment. Historical cost and production data were gathered for the past 10 months.

Month

Maintenance Cost

Units Produced

March

P 2,750

450

April

2,250

200

May

5,000

700

June

3,500

700

July

4,000

600

August

3,250

400

September

4,500

800

October

125

25

November

2,500

350

December

3,000

300

Required - Compute the variable maintenance cost per unit and monthly fixed cost using high-low method.

Reference no: EM133116852

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