Solution-What would be the variable rate per machine hour

What would be the variable rate per machine hour for factory

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Reference no: EM132624829

The following six months of data were collected on maintenance cost and the number of machine hours in a factory:

MONTH	MAINTENANCE COST	MACHINE HOURS
July	$16,900	5,600
August	13,900	4,500
September	10,900	3,800
October	11,500	3,600
November	13,000	4,200
December	17,900	4,500

Problem 1: Select the correct set of High and Low months from the following combinations in order to use the High-Low method to separate mix costs:

                 High    Low
A.              July             October
B.               July           September
C.             December      September
D.              December          October

Problem 2: Refer to the information in question 1 above. Using High-Low method what would be the variable rate per Machine Hour for the factory?

A. $3.00

B. $2.70

C. $3.50

D. $4.50

Problem 3: Refer to the data in question 1 above. What will be the monthly fixed maintenance cost for the factory?

A. $1520

B. $1680

C. $1780

D. $1880

Reference no: EM132624829

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What would be the variable rate per machine hour for factory

Reference no: EM132624829

Reference no: EM132624829

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