Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DubboLtd has accumulated the following data for the most recent 6-month period. Maintenance services have been determined to be a mixed cost. Month Direct labour

DubboLtd has accumulated the following data for the most recent 6-month period. Maintenance services have been determined to be a mixed cost.

Month

Direct labour hours

Maintenance services

July

30,000

$45,000

August

18,000

28,000

September

21,000

40,000

October

4,000

17,000

November

12,000

20,000

December

9,000

20,000

Management believes that maintenance cost is a mixed cost that depends on direct labour hours. Using the high-low method to estimate the variable component of this cost, the estimate would be closest to:

Select one:

a.$0.93 per direct labour hour

b.$1.10 per direct labour hour

c.$1.08 per direct labour hour

d.$0.95 per direct labour hour

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

Recommended Textbook for

Management Accounting In A Dynamic Environment

Authors: Cheryl S McWatters, Jerold L Zimmerman

1st Edition

0415839025, 9780415839020

More Books

Students also viewed these Accounting questions