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The table below provides data on Maintenance Cost and Machine Hours for 12 months of a year Using the High-Low method, what is the estimate
The table below provides data on Maintenance Cost and Machine Hours for 12 months of a year | |||||
Using the High-Low method, what is the estimate of Maintenance Cost if machines are expected to run for 600 hours? | |||||
Month | Cost Driver Activity Level | Total Cost of Cost Item | |||
Number of Machine Hours | Maintenance Cost in $ | ||||
January | 670 | 15,500 | |||
February | 590 | 16,000 | |||
March | 680 | 17,000 | |||
April | 700 | 19,000 | |||
May | 660 | 16,200 | |||
June | 680 | 17,100 | |||
July | 655 | 16,500 | |||
August | 710 | 18,400 | |||
September | 610 | 15,000 | |||
October | 650 | 16,600 | |||
November | 685 | 16,400 | |||
December | 705 | 19,000 |
A. | $15,100 | |
B. | $15,900 | |
C. | $15,500 | |
D. | $16,000 | |
E. | None of these choices |
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