Coronado Industries' high and low level of activity last year was 52,000 units of product produced in May and 21,000 units produced in November. Machine maintenance costs were $147,200 in May and $66,600 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units. a. $135,200 b. $129,000 c. $126,000 d. $135,100

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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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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Coronado Industries' high and low level of activity last year was 52,000 units
of product produced in May and 21,000 units produced in November.
Machine maintenance costs were $147,200 in May and $66,600 in November.
Using the high-low method, determine an estimate of total maintenance cost
for a month in which production is expected to be 45,000 units.
a. $135,200
b. $129,000
c. $126,000
d. $135,100
Transcribed Image Text:Coronado Industries' high and low level of activity last year was 52,000 units of product produced in May and 21,000 units produced in November. Machine maintenance costs were $147,200 in May and $66,600 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units. a. $135,200 b. $129,000 c. $126,000 d. $135,100
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