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The controller of Cullumber Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,004 3,414 4,097 5,121 3,642 6,076 Total Machine Hours 3,985 4,552 6,828 8,990 Variable cost per machine hour $ 5,690 9,105 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)

The controller of Cullumber Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,004 3,414 4,097 5,121 3,642 6,076 Total Machine Hours 3,985 4,552 6,828 8,990 Variable cost per machine hour $ 5,690 9,105 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)

FINANCIAL ACCOUNTING
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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The controller of Cullumber Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,004 3,414 4,097 5,121 3,642 6,076 Total Machine Hours 3,985 Variable cost per machine hour $ 4,552 6,828 8,990 5,690 9,105 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)
Transcribed Image Text:The controller of Cullumber Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,004 3,414 4,097 5,121 3,642 6,076 Total Machine Hours 3,985 Variable cost per machine hour $ 4,552 6,828 8,990 5,690 9,105 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)
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