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Estimate cost formula for total manufacturing cost

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With clear and simple Explanation plz With clear and simple Explanation,

High Low Method:

Assume a company has the following manufacturing costs:

Production volume                                             5,500 units               6,500 units

Direct Material (variable cost)……………….. $12,650                    $14,950          

Direct Labor (variable cost)………………….. $ 8,800                     $10,400

Rent, factory (fixed cost)……..……………... $17,725                   $17,725

Electricity, factory (mixed cost)…………….. $9,800                      $10,500

Maintenance, factory (mixed cost)………….   $14,300                    $15,400

Using the high low method, estimate a cost formula for total manufacturing cost.

Reference no: EM131255854

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