High Low Method Estimation Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months of operations Hours Maintenance Cost January 170 $6,365 February 210 7,660 March 140 5,630 April 120 5,320 May 180 6,610 June 190 6,855 Requirement 1 Using the high low method of analysis, estimate variable cost per labor hour for maintenance Round to 2 decimal places $ Requirement 2 High low method of analysis continued Using the value calculated in Requirement 1, calculate the total fixed cost per month for maintenance Round to 2 decimal places $

The Answer is in the image, click to view ...

Question: High-Low Method Estimation Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for

High-Low Method Estimation

Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months of operations.

	Hours	Maintenance Cost
January	170	$6,365
February	210	7,660
March	140	5,630
April	120	5,320
May	180	6,610
June	190	6,855

Requirement 1:

Using the high-low method of analysis, estimate variable cost per labor hour for maintenance. Round to 2 decimal places.

Requirement 2:

High-low method of analysis continued. Using the value calculated in Requirement 1, calculate the total fixed cost per month for maintenance. Round to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

High-Low Method Estimation Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months of operations. Question...

High-Low Method Estimation Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months of operations. Hours...

Please answer ASAP! Please show handwritten work thank you!! Question 16 40 High-Low Method Estimation Donner Company would like to estimate the variable and fixed components of its maintenance costs...

High-Low Method Estimation Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months of operations. Hours...

Donner Company would like to estimate Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months of...

(AQ AP) - (5QSP) (AQSP) - (SQXSP) Question 16 8 pts Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months...

Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months of operations. Hours Maintenance Cost January 130...

1) Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for the last five months of operations. January: Labor Hours...

MMD oil company leased property from WMM investors paid the following amounts in 2019. shut in royalty payments, not recoverable > 2400 shut in royalty payments failure ti make payments terminate...

Explain how the liability of a shareholder is limited.

15. The rent for the stores where materials are stored falls under: (a) Inventory carrying cost, ( ) (b) Ordering cost, ( ) ( c) Procurement cost, ( ) ( d) Stocking cost. ( )

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

3. Workplace comedies and dramas typically play off situations that really arise in organizational settings. Watch a few episodes of such workplace sitcoms as Parks and Recreation and Workaholics or...

4. Select a city, state, or campus problem that is relevant to the members of your class. Form a group to solve the problem using the six-step decision-making process described in this chapter.

2. Arrange an interview with the chair, president, or director of an organization to determine how the various groups within the organization operate. How closely do these groups conform to the...