Los Angeles Company wants to conduct an analysis of the behavior of the maintenance cost of...

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Los Angeles Company wants to conduct an analysis of the behavior of the maintenance cost of its factory equipment in relation to the number of units produced using such equipment. Historical cost and production data were gathered for the past 10 months. Month March April May June July August September October November December Maintenance Cost P 2,750 2,250 5,000 3,500 4,000 3,250 4,500 125 2,500 3,000 Units Produced 450 200 700 700 600 400 800 25 350 300 Required: Compute for the variable maintenance cost per unit and monthly fixed cost using high-low method. Los Angeles Company wants to conduct an analysis of the behavior of the maintenance cost of its factory equipment in relation to the number of units produced using such equipment. Historical cost and production data were gathered for the past 10 months. Month March April May June July August September October November December Maintenance Cost P 2,750 2,250 5,000 3,500 4,000 3,250 4,500 125 2,500 3,000 Units Produced 450 200 700 700 600 400 800 25 350 300 Required: Compute for the variable maintenance cost per unit and monthly fixed cost using high-low method.

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COMPUTATION OF VARIABLE MANUFACTURING COST PER UNIT HIGHEST ACTIVITY FOR THE COMPANY OCCURRED IN MAY ... View the full answer