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Maintenance costs at Seaside Manufacturing over the past six months are listed in the following table. Month January FebruaryMaintenance costs at Seaside Manufacturing over the past six months are listed in the following table. Month January FebruaryThe high-low method is theoretically better than regression analysis because the high-low method uses more data points than rIf inventory has grown, operating income will be higher under absorption costing than it is under variable costing. O True Fa

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Answer #1

Answers :

1) A) $16,600

2) C) $0.91

3) False

4) True

17000 13000 4000 Estimate the costs with High-Low Method Month Hours Cost High level of Activity May 18000 low level of ActivEstimate the costs with High-Low Method Month Hours Cost High level of Activity May 17200 low level of Activity March 14000 D

The high low method doesn't consider all Data points so regression is better than the Highlow Method.

More Inventory leads to the low Cost of Goods sold under absorption costing and High operating income

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