# How do you find the unit variable cost using the high low method?

## How do you find the unit variable cost using the high low method?

High Low Method

• Variable Cost Per Unit x3d (Highest Activity Cost u2013 Lowest Activity Cost) / (Highest Activity Units u2013 Lowest Activity Units) …
• Fixed Cost x3d Highest Activity Cost u2013 (Variable Cost Per Units * Highest Activity Units) …
• Fixed Cost x3d Lowest Activity Cost u2013 (Variable Cost Per Units * Lowest Activity Units)
• ## When applying the high low method What is the variable cost element of a mixed cost calculation before the fixed cost element?

An activity index identifies the activity that has a causal relationship with a particular cost.TrueWhen applying the high-low method, the variable cost element of a mixed cost is calculated before the fixed cost element.True34 more rows

## How do you determine unit variable cost?

To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs x3d Cost Per Unit x Total Number of Units.

## How do you do the high low method?

High-low method example

• Step 1: Identify the highest and lowest activity level. …
• Step 2: Calculate the variable cost per unit. …
• Step 3: Calculate the fixed cost. …
• Step 4: Calculate the total variable cost for the new activity. …
• Step 5: Calculate the total cost.
• ## How do you calculate cost using the high-low method?

High-Low Method Formula

• Fixed cost x3d Highest activity cost u2013 (Variable cost per unit x Highest activity units)
• Fixed cost x3d Lowest activity cost u2013 (Variable cost per unit x Lowest activity units)
• Cost model x3d Fixed cost + Variable cost x Unit activity.
• ## How do you find the fixed and variable cost using the high-low method?

The formula for the High-Low Method

• Variable Cost Per Unit x3d (Highest activity cost u2013 Lowest activity cost) / (Highest activity units u2013 Lowest activity units)
• Fixed cost x3d Highest activity cost u2013 (Variable cost per unit * Highest activity units)
• ## When we use the high-low method we determine the variable cost per unit by?

The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level. If the variable cost is a fixed charge per unit and fixed costs remain the same, it is possible to determine the fixed and variable costs by solving the system of equations

## How do you calculate fixed and variable costs using the high low method?

High-Low Method Formula

• Fixed cost x3d Highest activity cost u2013 (Variable cost per unit x Highest activity units)
• Fixed cost x3d Lowest activity cost u2013 (Variable cost per unit x Lowest activity units)
• Cost model x3d Fixed cost + Variable cost x Unit activity.
• Fixed cost x3d $371,225 u2013 ($74.97 x 4,545) x3d \$30,486.35.
• ## What is the formula to calculate variable cost?

Variable Cost Formula. To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs x3d Cost Per Unit x Total Number of Units

## How do you calculate semi variable cost using high low method?

The high-low method is an accounting technique used to separate out fixed and variable costs in a limited set of data. It involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.