Tim Horton, an accountant for Brent, Inc., has decided to estimate the fixed and variable components associated with the company’s repair activity. She has collected the following data for the past six months. Estimate the fixed and variable components for the repair costs using the high-low method. Using the cost formula, predict the total cost of repair if 14 hours are used.
Tim Horton, an accountant for Brent, Inc., has decided to estimate the fixed and variable components associated with the company’s repair activity. She has collected the following data for the past six months. Estimate the fixed and variable components for the repair costs using the high-low method. Using the cost formula, predict the total cost of repair if 14 hours are used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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30. Tim Horton, an accountant for Brent, Inc., has decided to estimate the fixed and variable components associated with the company’s repair activity. She has collected the following data for the past six months. Estimate the fixed and variable components for the repair costs using the high-low method. Using the cost formula, predict the total cost of repair if 14 hours are used.
Transcribed Image Text:Repair Hours
Total Repair Costs
S 800
1,100
10
20
15
900
12
900
18
1,050
1,250
25
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