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24 May, 13:03

Wildhorse Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 8,000 $14,120 March 8,550 $14,979 February 7,490 13,495 April 8,195 14,490 Collapse question part (a1) Compute the variable cost per mile using the high-low method. (Round answer to 2 decimal places, e. g. 2.25.) Variable cost per mile $

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  1. 24 May, 13:29
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    Variable cost per unit = $1.4 per unit

    Explanation:

    Giving the following information:

    Miles Driven Total Cost Miles Driven Total Cost

    January: 8,000 $14,120

    March: 8,550 $14,979

    February: 7,490 $13,495

    April: 8,195 $14,490

    To calculate the variable cost under the high-low method, we need to use the following formula:

    Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units - Lowest activity units)

    Variable cost per unit = (14,979 - 13,495) / (8,550 - 7,490)

    Variable cost per unit = $1.4 per unit
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