Question
Maintenance costs at a Whetsel Corporation factory are listed below: Machine Hours Maintenance Cost March Apri May 3.135 $48 340 3.095 3.47.993 3.133 $48,345 3.157
Maintenance costs at a Whetsel Corporation factory are listed below:
Machine Hours
Maintenance Cost
March
Apri
May
3.135
$48 340
3.095
3.47.993
3.133
$48,345
3.157
$48,548
3.065
$47,733
August
3.076
547.830
September
3 084
547 880
October
3.125
548.247
November
3.098
$48.014
Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first and round off to the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to what?
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Internal Auditing Principles And Techniques
Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke
2nd Edition
0894133268, 978-0894133268
