Maintenance costs at a Whetsel Corporation factory are listed below: Machine-Hours Maintenance Cost March 3,157 48,548 April 3,080 47,830 May 3,135 48,340 June 3,065 47,720 Management believes that maintenance cost is a mixed cost that depends on machine hours. Use the high-low method to estimate the maintenance cost for the month of July assuming a level of activity of 3,150 machine hours. a. 48,485 b. 48,480 c. 48,483 d. 48,488

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...
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Maintenance costs at a Whetsel Corporation factory are listed
below:
Machine-Hours Maintenance Cost
March 3,157
48,548
April 3,080
47,830
May 3,135
48,340
June
3,065
47,720
Management believes that maintenance cost is a mixed cost
that depends on machine hours. Use the high-low method to
estimate the maintenance cost for the month of July assuming
a level of activity of 3,150 machine hours.
a. 48,485
b. 48,480
c. 48,483
d. 48,488
Transcribed Image Text:Maintenance costs at a Whetsel Corporation factory are listed below: Machine-Hours Maintenance Cost March 3,157 48,548 April 3,080 47,830 May 3,135 48,340 June 3,065 47,720 Management believes that maintenance cost is a mixed cost that depends on machine hours. Use the high-low method to estimate the maintenance cost for the month of July assuming a level of activity of 3,150 machine hours. a. 48,485 b. 48,480 c. 48,483 d. 48,488
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