Question
The following information is available for Alba Company's maintenance cost over the last four months. Month Maintenance hours Maintenance cost January 150 $6,000 February 120
The following information is available for Alba Company's maintenance cost over the last four months.
| Month | Maintenance hours | Maintenance cost |
| January | 150 | $6,000 |
| February | 120 | $5,100 |
| March | 240 | $8,100 |
| April | 210 | $6,900 |
- Use the high-low method to estimate both the fixed and variable component of its maintenance cost.
b. Estimate maintenance cost of 200 maintenance hours using the estimate you calculated in (a) above.
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
22nd edition
9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275
