Maintenance costs at Red Dot Manufacturing over the past six months are listed in the following table.

-Using the high low method, what is the total maintenance costs at Red Dot Manufacturing if 18,000 machine hours were used?
A) $15,660
B) $7,875
C) $9,950
D) $10,175

Question

Maintenance costs at Red Dot Manufacturing over the past six months are listed in the following table.
 
-Using the high low method, what is the total maintenance costs at Red Dot Manufacturing if 18,000 machine hours were used?
A) $15,660 
B) $7,875 
C) $9,950 
D) $10,175

Quizplus · Accepted Answer

D) y = ($0.45 × 18,000 mh) + $2,075 = $10,175

Maintenance Costs at Red Dot Manufacturing Over the Past Six