Bennett Company's high and low level of activity last year was 150,000 units produced in June and 50,000 units produced in January. Machine maintenance costs were $104,000 in June and $40,000 in January. Using the high- low method, estimated total maintenance cost for a month in which 100,000 units will be produced is a) $69,334. b) $80,000. c) $72,000. d) not determinable with the information given.

Bennett Company's high and low level of activity last year was 150,000 units produced in June and 50,000 units produced in January. Machine maintenance costs were $104,000 in June and $40,000 in January. Using the high- low method, estimated total maintenance cost for a month in which 100,000 units will be produced is a) $69,334. b) $80,000. c) $72,000. d) not determinable with the information given.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3CMA: Bolger and Co. manufactures large gaskets for the turbine industry. Bolgers per-unit sales price and...

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