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 47,720 June 3,065 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
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 47,720 June 3,065 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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
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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General accounting

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
47,720
June
3,065
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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