12-14

Use the following information for Questions 12-14 Willco Inc, manufactures electronic parts. They are analyzing their monthly maintenan to determine the best way to budget these costs in the future. They have collected the data for the last 6 months: Month Machine Hours Maintenance Costs January 30,000 $62,000 February 40,000 $74,500 March 37,500 $65.900 April 39,000 $68,750 May 42,300 $74,000 June 35,000 $64,500 SP 1. Using the high-low method and the Wille data calculate the variable maintenance machine hour (round to three decimal places). A. $1.016/hr B. $0.976/hr C. $1.863/hr D. $1.250/hr E. $0.907/hr 13. Using the high-low method and the Willco data above, what is the approximate fixed cost component of the monthly maintenance costs? (Note: use the High level of production exact answer to avoid large rounding error)? A. $33,860 B. 524,500 C. $32,735 D. $32,715 E $30,686 14. If Willco Inc. expects to operate the machines for a total of 32,000 hours in the next month, calculate the expected maintenance costs. $31,232 B. 552,512 $64,735 D. 563,947 E. $65.227