Dallus wants to examine the behaviour of maintenance costs for budgeting purpose. Thefollowing data on machine hours worked and maintenance costs for the past year are collected:Month Machine Hours Maintenance CostJanuary18,000February 15,000March12,75021,000AprilMayJune11,88014,500July19,000August14,880September 10,000October13,360November 16,600December 18,800$20,60018,90015,10022,01013,20019,50025,00019,87412,00015,50019,80013,500Required:a. Use the high-low method to estimate the variable cost per machine hour and the fixed costper month.b. Plot and comment on the estimated cost function.C. Develop a formula to express the cost behaviour of ABC's maintenance costs.d. According to the budget, the machine is expected to work 200,000 hours next year. Howmuch is the budgeted maintenance costs?

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Dallus wants to examine the behaviour of maintenance costs for budgeting purpose. The following data on machine hours worked and maintenance costs for the past year are col Month Machine Hours Maintenance Cost January 18,000 February 15,000 March 12,750 21,000 April May June 11,880 14,500 $20,600 18,900 15,100 22,010 13,200 19,500

Dallus wants to examine the behaviour of maintenance costs for budgeting purpose. The following data on machine hours worked and maintenance costs for the past year are col Month Machine Hours Maintenance Cost January 18,000 February 15,000 March 12,750 21,000 April May June 11,880 14,500 $20,600 18,900 15,100 22,010 13,200 19,500

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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High-low method. Wayne Mueller, financial analyst at CELL Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Mueller collects the following data on machine-hours worked and utility costs for the past 8 quarters:
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08-18 at 11.37.45 AM_LI.jpg & Edit & Create QUESTION 2 Steve Richardson, management accountant at Jupiter Ltd, is examining the behaviour of quarterly maintenance costs for budgeting purposes. Steve collects the following data on machine-hours worked and maintenance costs for the past eight quarters: Save Answer Quarter Machine-hours Maintenance costs 1,200 $2,150 12. 750 1,500 3. 1,100 2,000 14 1,500 2,700 15 900 1,450 1,490 2,800 16 2,250 7 1,300 1,950 1,000 Required: Close Window a. Estimate the cost function for the quarterly data using the high-low method, Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers. DELL 11:46 AM 30°C AQI 23 A A 90) 8/18/2021 pe here to search
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