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Question 4 3 pts Total monthly maintenance costs for Osgood Industries are listed below. Management believes that maintenance cost is a mixed cost that
Question 4 3 pts Total monthly maintenance costs for Osgood Industries are listed below. Management believes that maintenance cost is a mixed cost that depends on machine hours. Use the high-low method to estimate the variable and fixed components of this cost and answer the following questions. Machine Hours Maintenance Costs March 3,135 hrs $48,340 April 3,095 hrs $47,993 May 3,133 hrs $48,345 June 3,157 hrs $48,548 July 3,065 hrs $47,733 August 3,076 hrs $47,830 A. Compute the variable cost per machine hour. Round to the nearest cent, show 2 decimals, do not use $. For example: 9.30678 9.31; 4.7612 = 4.76 B. Calculate the fixed cost.
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