Analyze Cost Behavior And Cost Drivers Practice Test

Fernwood Co. incurred $18,000 of maintenance costs at a production level of 6,000 units and $24,000 at a production level of 10,000 units. Using the high-low method, what is the variable maintenance cost per unit?

Fernwood Co. incurred $18,000 of maintenance costs at 6,000 units and $24,000 at 10,000 units. Using the high-low method with a variable rate of $1.50 per unit, what is the fixed cost component of maintenance?