DOWNLOAD: ACC 206 Week 3 Problem 3 High-low method (Updated October 2013).
High-low method
The following cost data pertain to 20X6 operations of Heritage Products:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Shipping costs $56,200 $58,620 $61,000 $59,400
Orders shipped 120 135 170 145
The company uses the high-low method to analyze costs.
a. Determine the variable cost per order shipped.
b. Determine the fixed shipping costs per quarter.
c. If present cost behavior patterns continue, determine total shipping costs for 20X9 if activity amounts to 570 orders.
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