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Peterson Company incurred the following high and low maintenance costs totals during 2010: $370,000 at 20,000 units of activity during March and $274,000 at 12,000
Peterson Company incurred the following high and low maintenance costs totals during 2010: $370,000 at 20,000 units of activity during March and $274,000 at 12,000 units during August.
Instructions: Use the high-low method to compute the variable cost per unit and the total fixed cost element of the mixed component. (Variable cost per unit = $12; Total fixed costs = $130,000)
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