Based on the above, using the high-lowmethod, determine an estimate of totalmaintenance cost for a month in whichproduction is expected to be 33,000units. *$175,000$76,000$77,650None of the above X Company accumulates the followingdata about maintenance costs, a mixedcost, using hours as the activity level:HoursCost35,000$185.000AugustSeptember40,000210,000October30.000160.000November42.000220,000December51.000265,000

Solution:- Calculation of production cost using High low method as follows under:-

Based on the above, using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 33,000 units. * O $175,000 O $76,000 O $77,650 O None of the above

Based on the above, using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 33,000 units. * O $175,000 O $76,000 O $77,650 O None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Based on the above, using the high-low
method, determine an estimate of total
maintenance cost for a month in which
production is expected to be 33,000
units. *
$175,000
$76,000
$77,650
None of the above

X Company accumulates the following
data about maintenance costs, a mixed
cost, using hours as the activity level:
Hours
Cost
35,000
$185.000
August
September
40,000
210,000
October
30.000
160.000
November
42.000
220,000
December
51.000
265,000

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