Maintenance costs at a Staton Corporation factory are listed below: March April May June July August September October November Machine- Hours 3,627 3,588 3,637 3,638 3,572 3,611 3,644 3,609 3,669 Maintenance Cost $ 54,384 $ 53,980 $ 54,453 $ 54,491 $53,843 $ 54,196 $ 54,550 $ 54,181 $ 54,767 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first and round off to the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to: O $15.00 per machine-hour; $54,316 per month O $9.53 per machine-hour; $19,801 per month O $9.12 per machine-hour; $21,309 per month O $0.10 per machine-hour; $54,382 per month

Maintenance costs at a Staton Corporation factory are listed below: March April May June July August September October November Machine- Hours 3,627 3,588 3,637 3,638 3,572 3,611 3,644 3,609 3,669 Maintenance Cost $ 54,384 $ 53,980 $ 54,453 $ 54,491 $53,843 $ 54,196 $ 54,550 $ 54,181 $ 54,767 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first and round off to the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to: O $15.00 per machine-hour; $54,316 per month O $9.53 per machine-hour; $19,801 per month O $9.12 per machine-hour; $21,309 per month O $0.10 per machine-hour; $54,382 per month

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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