Using the high-low method, calculate the fixed costs per month for Wilson Manufacturing based on the following utility costs and machine hours: Month Cost ($) Machine Hours March 92,500 8,000 April 156,500 16,000 May 124,000 12,000 June 108,000 10,000 A. $25,000 B. $30,000 C. $28,500 D. $32,000

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter7: Allocating Costs Of Support Departments And Joint Products
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Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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Using the high-low method, calculate the fixed costs per month for Wilson
Manufacturing based on the following utility costs and machine hours:
Month Cost ($) Machine Hours
March 92,500 8,000
April 156,500 16,000
May
124,000 12,000
June 108,000 10,000
A. $25,000
B. $30,000
C. $28,500
D. $32,000
Transcribed Image Text:Using the high-low method, calculate the fixed costs per month for Wilson Manufacturing based on the following utility costs and machine hours: Month Cost ($) Machine Hours March 92,500 8,000 April 156,500 16,000 May 124,000 12,000 June 108,000 10,000 A. $25,000 B. $30,000 C. $28,500 D. $32,000
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