Answer:
$560
Explanation:
As we know that the total cost would be a sum of fixed cost and the variable cost
In mathematically,
Total cost = Fixed cost + variable cost
But in the question, the variable cost is not given, so first, we have to find that based on high low method.
So, the variable cost equals to
= Change in total cost ÷ change in machine hours
= ($4,460 - $2,900) ÷ (6,000 - 3,600)
= $1,560 ÷ 2,400
= 0.65
Now the fixed cost equal to
= Total cost - variable cost
= $4,460 - (6,000 × 0.65)
= $4,460 - $3,900
= $560
