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QUESTION 6 (CLO-3) The management of Logo Manufacturing Company want to understand cost variations in their Abu Dhabi factory. One cost category that is investigated

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QUESTION 6 (CLO-3) The management of Logo Manufacturing Company want to understand cost variations in their Abu Dhabi factory. One cost category that is investigated is maintenance in two different departments. The cost data for the previous year is presented below, next to two potential cost drivers that were selected by the factory manager, Month Month Machine Units Maintenance Maintenance hours produced Costs 2 (AED) costs (AED) recorded 1 1200 12000 1 11000 3200 2 1800 14200 2 14000 3550 3 900 15800 15000 3700 4 1200 16880 4 17000 4300 5 2000 5 18800 19000 4700 6 2200 21000 19500 5250 7 2300 20000 7 20000 5000 8 2200 19200 18500 4800 9 1600 15460 16500 4000 10 10 1400 14000 15000 3500 11 11 1400 14100 13000 3525 12 12 1300 3300 13200 13000 Insert the correct numbers in the following sentences. Use numerals 0-9 only for answers that give you whole numbers. Do not use commas or dollar signs. If you want to write a decimal number, always round to one decimal, e.g., for 2.34 type 2.3 As the factory accountant, you use the high-low method on the data of units produced. You find that the variable cost per unit produced is AED and the fixed cost is AED of the budget for the coming month is 3000 units produced then you would expect maintenance costs of AED 1300 13200 12 13000 13000 3525 3300 Insert the correct numbers in the following sentences. Use numerals 0-9 only for answers that give you whole numbers. Do not use commas or dollar signs. If you want to write a decimal number, always round to one decimal, c.g., for 2.34 type 23 As the factory accountant, you use the high-low method on the data of units produced. You find that the variable cost por unit produced is AED and the fixed cost is AED If the budget for the coming month is 3000 units produced then you would expect maintenance costs of AED You then decide to use the high-low method on the other potential cost driver in the table above, namely, machine hours. You find that the variable cost per machine hour is AED and the fixed cost is AED if the budget for the coming month is 22000 machine hours then you would expect maintenance costs of AED

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