At the high level of activity in December, 5,000 labor hours were used and maintenance costs were $15,000. In August, a month of low activity, 3,000 labor hours were used and maintenance costs amounted to $11,000. Using the high-low method, what is the estimated fixed cost element of maintenance costs? a. $5,000 b. $7,000 c. $9,000 d. $3,000

At the high level of activity in December, 5,000 labor hours were used and maintenance costs were $15,000. In August, a month of low activity, 3,000 labor hours were used and maintenance costs amounted to $11,000. Using the high-low method, what is the estimated fixed cost element of maintenance costs? a. $5,000 b. $7,000 c. $9,000 d. $3,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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