What is Dugan's variable cost component for maintenance costs? $ _____ per machine hour b) What is Dugan's fixed cost component for maintenance costs? $ c) What are the total expected maintenance cost when the activity level is 450 machine hours? $
Dugan Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs:
Month | Total Maintenance Costs | Total Machine Hours |
January | $ 5,000 | 400 |
February | $ 6,000 | 500 |
March | $ 7,200 | 700 |
April | $ 9,600 | 900 |
May | $ 6,400 | 600 |
June | $ 9,800 | 890 |
Use the high-low method to answer the following questions about Dugan Industries.
Round your answers to two decimal places.
a) What is Dugan's variable cost component for maintenance costs? $ _____ per machine hour
b) What is Dugan's fixed cost component for maintenance costs? $
c) What are the total expected maintenance cost when the activity level is 450 machine hours? $
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What is Dugan's variable cost component for maintenance costs? $ _____ per machine hour b) What is Dugan's fixed cost component for maintenance costs? $ c) What are the total expected maintenance cost when the activity level is 450 machine hours? $
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