Question no. 11: solved: The following are the maintenance costs of Al-Aqsa Trading Company during the first four months of the year2022 maintenance costs. month maintenance hours 8 9 10 11 5000 7100 8000 6200 7400 8500 9800 7000 Required: use high- the low method to determine the cost equation and estimate the maintenance costs at the level of 9000 hours for the month of 12/2022 Solution: use the following steps: 90 % 1. Determine the highest-lowest level of activity and then determine the opposite costs 2. Determine the variable cost (slope) 3. Determine fixed cost. 4. Determine the cost equation. 5. Predict cost at 9000 hours for 12/2022.
Question no. 11: solved: The following are the maintenance costs of Al-Aqsa Trading Company during the first four months of the year2022 maintenance costs. month maintenance hours 8 9 10 11 5000 7100 8000 6200 7400 8500 9800 7000 Required: use high- the low method to determine the cost equation and estimate the maintenance costs at the level of 9000 hours for the month of 12/2022 Solution: use the following steps: 90 % 1. Determine the highest-lowest level of activity and then determine the opposite costs 2. Determine the variable cost (slope) 3. Determine fixed cost. 4. Determine the cost equation. 5. Predict cost at 9000 hours for 12/2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question no. 11: solved: The following are the maintenance costs of Al-Aqsa
Trading Company during the first four months of the year2022
maintenance costs
month maintenance hours
8
9
10
11
5000
7100
8000
6200
7400
8500
9800
7000
Required: use high- the low method to determine the cost equation and
estimate the maintenance costs at the level of 9000 hours for the month of
12/2022
Solution: use the following steps:
1. Determine the highest-lowest level of activity and then determine the
P
opposite costs
2. Determine the variable cost (slope)
3. Determine fixed cost.
4. Determine the cost equation.
5. Predict cost at 9000 hours for 12/2022.
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