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Indirect materials (variable) Rent (fixed) Maintenance (mixed) 5,000,000 6,000,000 3,250,000 overhead costs $14,250,000 To have data available for planning. the company wants to break down
Indirect materials (variable) Rent (fixed) Maintenance (mixed) 5,000,000 6,000,000 3,250,000 overhead costs $14,250,000 To have data available for planning. the company wants to break down the maintenance cost into ies variable and fixed cost elements e how much of the $17,625,000 factory overhead cost at the high level of activity consists of maintenance cost. (Hint To do this, it may be helpful to first determine how much of the $17.625,00 0 consists of indirect materials and rent Think about the behavior of variable and fied costs) of a 2. Using the high-low method, estimate a cost formula for maintenance Direct Labor-Hours Maintenance Cost High level of aclivity of a ge cost e DLH Fixed cost element O Type here to search di Indirect materials (variable) Rent (fixed) Maintenance (mixed) 5,000,000 6,000,000 3,250,000 overhead costs $14,250,000 To have data available for planning. the company wants to break down the maintenance cost into ies variable and fixed cost elements e how much of the $17,625,000 factory overhead cost at the high level of activity consists of maintenance cost. (Hint To do this, it may be helpful to first determine how much of the $17.625,00 0 consists of indirect materials and rent Think about the behavior of variable and fied costs) of a 2. Using the high-low method, estimate a cost formula for maintenance Direct Labor-Hours Maintenance Cost High level of aclivity of a ge cost e DLH Fixed cost element O Type here to search di
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