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Problem 4 Cost Function Ken-Ken Company has determined that their maintenance cost is a mixed cost and aims to perform segregation technique. They observed
Problem 4 Cost Function Ken-Ken Company has determined that their maintenance cost is a mixed cost and aims to perform segregation technique. They observed the maintenance cost over a six-month period according to behavior with machine hours, their main cost driver. Use high-low method and compute the following below. Month Maintenance Cost Machine Hours January 5,400.00 900.00 February 6,000.00 1,050.00 March 7,200.00 1,500.00 April 9,000.00 2,070.00 May 6,400.00 1,200.00 June 11,000.00 2,100.00 Required 9. Variable cost rate per hour 10. Fixed cost 11. Expected total cost at activity level of 1,750 hours.
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Mathematical Applications For The Management, Life And Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
12th Edition
978-1337625340
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