The Surgical Care Unit of Gentle Care Gentle Care Health Group uses the high-low method to predict its total surgical unit supplies costs..
Variable cost components=
Highest surgical unit cost- lowest surgical unit cost
Highest nursing hrs worked – Lowest nursing hrs worked
Total fixed cost =
Total mixed cost – (highest nursing hrs worked X variable cost component )
Y= variable result (x) + total fixed cost
Operating cost = (variable component x number of hrs worked) + fixed cost