Solution-What is the expected total maintenance cost for

What is the expected total maintenance cost for august

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Question - Mahmood Company gathered the following information on maintenance costs and factory machine usage for the last six months:

Month	Maintenance Cost	Factory Machine Hours
January	Rs.24,400	13,900
February	29,200	17,600
March	29,000	16,800
April	22,340	13,200
May	19,900	11,600
June	12,700	6,600

Instructions - Using the high-low method;

(a) What is the estimated variable portion of maintenance costs per factory machine hour?

(b) What is the estimated fixed maintenance cost each month?

(c) If it is estimated that 12,000 factory machine hours will be run in August, what is the expected total maintenance cost for August?

Reference no: EM132714798

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What is the expected total maintenance cost for august

Reference no: EM132714798

Reference no: EM132714798

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