Answer:
Variable cost per unit= $1.048
Step-by-step explanation:
Giving the following information:
Highest activity cost= $151,000
Highest activity units= 86,300
Lowest activity cost= $125,000
Lowest activity units= 61,500
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= (151,000 - 125,000) / (86,300 - 61,500)
Variable cost per unit= $1.048