Answer:
a. $8.14
Explanation:
The computation of the estimate of the variable component of inspection cost per unit produced using the high low method is shown below:
Variable cost per hour = (High inspection cost - low inspection cost) ÷ (High units produced - low units produced)
= ($10,795 - $10,176) ÷ (853 units - 777 units)
= $619 ÷ 76 units
= $8.14
We simply applied the above formula
