Comco, Inc.has accumulated the following data for the cost of maintenance on its machinery for the last four months: Assume that the relevant range includes all of the activity levels mentioned in this problem. Assuming Comco uses the high-low method of analysis, if machine hours are budgeted to be 20, 000 hours then the budgeted total maintenance cost would be expected to be:
A)$25, 400
B)$25, 560
C)$23, 700
D)$24, 720

Question

Comco, Inc.has accumulated the following data for the cost of maintenance on its machinery for the last four months:  Assume that the relevant range includes all of the activity levels mentioned in this problem. Assuming Comco uses the high-low method of analysis, if machine hours are budgeted to be 20, 000 hours then the budgeted total maintenance cost would be expected to be:
A)$25, 400 
B)$25, 560 
C)$23, 700 
D)$24, 720

Quizplus · Accepted Answer

The Answer of Comco, Inc.has accumulated the following data for the cost of maintenance on its machinery for the last four months:  Assume that the relevant range includes all of the activity levels mentioned in this problem. Assuming Comco uses the high-low method of analysis, if machine hours are budgeted to be 20, 000 hours then the budgeted total maintenance cost would be expected to be:
A)$25, 400 
B)$25, 560 
C)$23, 700 
D)$24, 720