MONTH……………UNITS…………OVERHEAD…………. INDEX
JAN………………….10………………….3352………………….100
FEB………………….10.5………………….3479………………….101
MAR………………….12………………….3860………………….102
APR………………….9………………….3098………………….104
MAY………………….9.5………………….3225 ………………….105
JUN………………….10.25………………….3416………………….106
Q. Using high low analysis, what is the variable cost per unit in June’s prices?
Answer is {(3860 x 106/102) -(3098 x 106/104)} / (12-9) = 284
Please be kind enough to explain how’s this answer is getting in detail.
Thank You