Total maintenance cost for a month problem


The high low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $39,000 in May and $15000 in November. using High-Low method , determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units

a) 36,000

b )29,500

c) 33,700

d) 30,000

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Accounting Basics: Total maintenance cost for a month problem
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