Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cinco Corporation is a manufacturing company. They produce a wide - range of products. They are able to sell well but do not have a

Cinco Corporation is a manufacturing company. They produce a wide-range of products. They are able to sell well but do not have
a great handle on their costs. Because of this, they are not able to plan accordingly and also not meeting their internal profit goals.
To get a better handle on things, Cinco Corp controller Steve Brule has put you in charge to perform cost analysis. One cost they
are having a particular hard time with projecting is maintenance cost of their machinery and equipment. Based on your
understanding of cost behaviour and the data that is available you decide to use the high-low method to analyze the maintenance
costs. Below is the data set you have assembled:
Month Total maintenance cost Maintenance hours
January $1,30065
February $1,32568
March $1,42370
April $1,12843
May $1,50976
June $1,68589
July $1,800102
August $1,775100
September $1,74295
October $1,23853
November $1,19548
December $1,07640
Instructions:
Based on answers from exercises 2.6 & 2.7 calculate the fixed costs based on the high-low method (round to nearest cent).
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Explain why two indifference curves cannot intersect.

Answered: 1 week ago