Question: Almond Company wishes to determine the fixed portion of its maintenance expense (a semi-variable expense), as measured against direct labor hours for the first Malayan three months of the year. The inspection costs are fixed; however, the adjustments necessitated by errors found during inspection account for the variable portion of the maintenance costs. Information for the first Malayan quarter is as follows:
|
|
Direct Labor Hours
|
Maintenance Costs
|
|
January
|
34,000
|
P61,000
|
|
February
|
31,000
|
58,500
|
|
March
|
34,000
|
61,000
|
Required: What is the fixed portion of Almond Company's maintenance expense, rounded to the nearest pesos?
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