Mountain View Transportation has collected the following information about maintenance costs for its bus fleet over the past five years: Year Kilometers Maintenance Costs 2020 80,000 $245,000 2021 95,000 $275,000 2022 75,000 $230,000 2023 90,000 $260,000 2024 110,000 $305,000 What is the best estimate of total maintenance costs for 2025 using the high-low method based on expected kilometers of 100,000?

Mountain View Transportation has collected the following information about maintenance costs for its bus fleet over the past five years: Year Kilometers Maintenance Costs 2020 80,000 $245,000 2021 95,000 $275,000 2022 75,000 $230,000 2023 90,000 $260,000 2024 110,000 $305,000 What is the best estimate of total maintenance costs for 2025 using the high-low method based on expected kilometers of 100,000?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

See similar textbooks

Similar questions

What is the estimated fixed cost for 2024?
Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000
What is the estimated fixed cost?
I NEED ANSWER
Accurate Answer
Step by step answer
Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2009 110,000 $390,000 2010 140,000 $420,000 2011 100,000 $360,000 2012 130,000 $410,000 2013 170,000 $450,000 What is the best estimate of total operating expenses for 2014 using the high- low method based on total expected miles of 120,000?
Abc
can you please solve this
What is the best estimate of total operating expenses?
Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years. Number of Visitors per Year(thousands) Maintenance Costs($000) 1,830 $ 2,316 2,010 2,559 2,700 3,360 Required: a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. (Enter your answers in dollars not in thousands of dollars. Round "Variable cost" answer to 2 decimal places.) b. The company expects a record 2,000,000 visitors next year. What would be the estimated maintenance costs? (Enter your answer in dollars not in thousands of dollars.)
Need answer