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Maddleson Inc. want to estimate the maintenance cost, which is measured against machine hours, for the next period budget. The following data has been provided
Maddleson Inc. want to estimate the maintenance cost, which is measured against machine hours, for the next period budget. The following data has been provided for the first six months of the current year: Month Machine-hours Maintenance Cost January 2,550 $1,275 February 2,300 1,200 March 2,100 1,100 April 2,600 May 1,300 2,350 June 1,225 2,450 Required: 1,250 a. Using the high and low points method, compute the variable cost rate and the fixed cost for maintenance cost. b. How much the estimated maintenance cost if the next period budget is 2,550 machine hours? Problem 4 (20%)
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