Question
Swan inc uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $43.70
Swan inc uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $43.70 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $ 38.90.
1. On the basis of this info, the variable cost per machine hour for swan was:
2. On the basis of information, the fixed costs for swan was:
3. Based on this info, what were the total maintenance costs when Swan experiences 23,000 machine hours?
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