Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Slonaker Inc. has provided the following data concerning its maintenance costs: Machine-Hours Maintenance Cost April 5,823 $30,403 May 5,806 $30,313 June 5,788 $30,261 July 5,785

Slonaker Inc. has provided the following data concerning its maintenance costs:

Machine-Hours Maintenance Cost
April 5,823 $30,403
May 5,806 $30,313
June 5,788 $30,261
July 5,785 $30,257
August 5,741 $30,102
September 5,819 $30,384
October 5,857 $30,436
November 5,825 $30,402
December 5,809 $30,342

Management believes that maintenance cost is a mixed cost that depends on machine-hours.

Required:

Estimate the variable cost per machine-hour and the fixed cost per month using the high-low method. (Round your "Variable cost" to 2 decimal places. Omit the "$" sign in your response.)

Variable cost per machine-hour $
Fixed cost per month $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

QS 9000 Handbook A Guide To Registration And Audit

Authors: Jayanta Bandyopadhyay

1st Edition

157444011X, 978-1574440119

More Books

Students also viewed these Accounting questions