Question
Perficient Ltd has accumulated the following data for the most recent 6-month period. Month Machine hours Maintenance services cost January 41,000 $53,000 February 18,000 $30,000
Perficient Ltd has accumulated the following data for the most recent 6-month period.
| Month | Machine hours | Maintenance services cost |
| January | 41,000 | $53,000 |
| February | 18,000 | $30,000 |
| March | 21,000 | $40,000 |
| April | 8,100 | $18,000 |
| May | 13,400 | $25,000 |
| June | 9,000 | $19,000 |
Management believes that the maintenance services cost is a mixed cost that depends on machine hours. Using the high-low method to estimate the variable component of this cost, the estimate would be closest to:
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Advances In International Accounting Volume 20
Authors: J. Timothy Sale
1st Edition
0762313994, 9780762313990
