At an activity level of 6,000 units, the cost for maintenance is $7,200: at 10,000 units, the cost for maintenance is $11,600. Using the high- low method, What is the cost formula for maintenance? Select one: a. $1.16 per unit b. $1.20 per unit c. $600 plus $1.10 per unit d. $1,200 plus $1.10 per unit

At an activity level of 6,000 units, the cost for maintenance is $7,200: at 10,000 units, the cost for maintenance is $11,600. Using the high- low method, What is the cost formula for maintenance? Select one: a. $1.16 per unit b. $1.20 per unit c. $600 plus $1.10 per unit d. $1,200 plus $1.10 per unit

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...

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Ribble Company has observed that at an activity level of 8,000 units the cost for maintenance is £15,000, and at 10,000 units the cost for maintenance is £16,500. Using the high-low method, the cost formula for maintenance is: £9,000 = £1.75/unit approximately £1.88/unit £15,000 + £0.15/unit £1.65/unit
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