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Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and
Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures:
Highest | Lowest | |||||
Cost per month | $ | 42,000 | $ | 34,000 | ||
Machine hours | 46,000 | 30,000 | ||||
Using the high-low method, the estimated variable cost per machine hour is:
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