Units Produced
62
116
55
30
46
Production Cost
225
360
215
150
180
Low
Activity
Step 1: Identify the High Activity and the Low Activity on the above table.
Step 2: Calculate the Variable Cost per Unit
Variable Cost per Unit
=
change in Cost
$360 150
$210
change in
= 116 30
= 86
Activity
units
units
= $2.44 /
unit
Cost
Cost
Cost
Cost
=
=
=
=