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Cost Behavior Analysis for High-Low Method : A company incurred total maintenance costs of $40,000 for 8,000 machine hours and $50,000 for 10,000 machine hours.
Cost Behavior Analysis for High-Low Method: A company incurred total maintenance costs of $40,000 for 8,000 machine hours and $50,000 for 10,000 machine hours. Using the high-low method, calculate the variable cost per machine hour and the total fixed maintenance cost. Discuss the limitations of the high-low method and alternative methods for analyzing cost behavior in the company's operations.
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