Machine-Hours Maintenance Cost February March 2,973 $26,825 $26,841 $26,532 2,971 April May June July . August September.. October. 2,887 2,951 $26,744 2,974 $26,860 2,956 $26,766 2,959 2,937 2,953 $26,792 $26,713 $26,788 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, these estimates would be closest to: A. $1.85 per machine-hour; $21,325 per month R $3 77 per machine-hour: $15 648 ner month

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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57. Maintenance costs at a Neller Corporation factory are listed below:
Machine-Hours Maintenance Cost
February
March
2,973
$26,825
2,971
$26,841
2,887
2,951
$26,532
$26,744
$26,860
$26,766
$26,792
$26,713
$26,788
April.
May
June .
2,974
July.
August .
September.
October..
2,956
2,959
2,937
2,953
Management believes that maintenance cost is a mixed cost that depends on machine-hours.
Using the high-low method to estimate the variable and fixed components of this cost, these
estimates would be closest to:
A. $1.85 per machine-hour; $21,325 per month
B. $3.77 per machine-hour; $15,648 per month
C. $9.07 per machine-hour; $26,762 per month
D. $0.27 per machine-hour; $26,071 per month
Transcribed Image Text:57. Maintenance costs at a Neller Corporation factory are listed below: Machine-Hours Maintenance Cost February March 2,973 $26,825 2,971 $26,841 2,887 2,951 $26,532 $26,744 $26,860 $26,766 $26,792 $26,713 $26,788 April. May June . 2,974 July. August . September. October.. 2,956 2,959 2,937 2,953 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, these estimates would be closest to: A. $1.85 per machine-hour; $21,325 per month B. $3.77 per machine-hour; $15,648 per month C. $9.07 per machine-hour; $26,762 per month D. $0.27 per machine-hour; $26,071 per month
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