Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Swan, Inc, uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $58.90

image text in transcribed
Swan, Inc, uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $58.90 per hour. When activity jumped to 26,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $46.90. On the basis of this information, what were total maintenance costs when Swan experienced 23,000 machine hours? (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount.) Multiple Choice $1,190,300. $1,040,000. $1,98,700 $158,700 $1,215,500

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

More Books

Students also viewed these Accounting questions

Question

Discuss the history of human resource management (HRM).

Answered: 1 week ago