Power Shade manufactures insulated windows. Their Repairs and Maintenance Cost is a mixed cost and varies most directly with machine hours worked. The following
Power Shade manufactures insulated windows. Their Repairs and Maintenance Cost is a mixed cost and varies most directly with machine hours worked. The following data have been gathered from the most recent operations: Month May June Machine Hours 1,400 1,900 July 2,000 August 2,500 September 2,200 October 2,700 November 1,700 December 2,300 Repairs and Maintenance Cost P 9,000 10,719 10,900 13,000 11,578 13,160 9,525 11,670 Required: Use the high and low points method to estimate the cost for Repairs and Maintenance if 2,400 machine hours will be used. Compute the variable cost per machine hour and the total fixed cost portion of this Repairs and Maintenance Cost.
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