Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The controller of Gutierrez Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs: Month Total Maintenance
The controller of Gutierrez Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs:
Month | Total Maintenance Costs | Total Machine Hours | |||||
January | $2,760 | 2,700 | |||||
February | 3,300 | 4,050 | |||||
March | 3,750 | 6,350 | |||||
April | 4,590 | 7,900 | |||||
May | 3,350 | 5,500 | |||||
June | 5,007 | 8,050 |
Determine the variable-cost component using the high-low method. (Round answer to 2 decimal places e.g. 12.25.)
Variable cost | $ | per machine hour |
Determine the fixed cost component using the high-low method.
Fixed cost | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started