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Records from previous periods show the following relationship between machine hours and maintenance costs: Machine hours Maintenance costs 14,750 27,450 11,300 26,650 9,500 23,850 16,900
Records from previous periods show the following relationship between machine hours and maintenance costs: |
Machine hours | Maintenance costs |
14,750 | 27,450 |
11,300 | 26,650 |
9,500 | 23,850 |
16,900 | 33,470 |
Source: adapted from Chartered Institute of Management Accountants, Paper P1, Performance Evaluation. |
Required: using High-Low method |
The estimated maintenance costs for 19,500 machine hours are |
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