Question
Q3. The following information drawn from ABC Corporation about maintenance costs in 2020. (1.5 Marks) Month Total maintenance costs (SR) Maintenance hours July 75,000 5,000
Q3. The following information drawn from ABC Corporation about maintenance costs in 2020. (1.5 Marks)
| Month | Total maintenance costs (SR) | Maintenance hours |
| July | 75,000 | 5,000 |
| August | 81,000 | 5,500 |
| September | 63,000 | 4,000 |
| October | 51,000 | 3,000 |
| November | 87,000 | 6,000 |
| December | 84,600 | 5,800 |
Required:
- Estimate the cost function for ABC using the high- low method.
- Predict maintenance costs if maintenance hours are 7,000 hours in January 2021.
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
12th edition
1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056
