Solved: High low method-cost formula for maintenance, Accounting Basics

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High low method-cost formula for maintenance

Problem: Johnson Company has observed that at an activity level of 5,000 units the cost for maintenance is $6,500 and at 10,000 units the cost for maintenance is $9,000. Using the high-low method, the cost formula for maintenance is:

$4,000 plus $.50 per unit
$3,000 plus $.60 per unit
$.90 per unit
$1.30 per unit

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Accounting Basics: High low method-cost formula for maintenance

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: High low method-cost formula for maintenance

Reference No:- TGS01738419

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Increase-decrease of company overall net operating income

Q : Federal income tax return for the current year

Q : Type of direct labor cost

Q : Total contribution margin in march

Q : High low method-cost formula for maintenance

Q : Manufacturing overhead costs in product costs

Q : Predetermined rate-underapplied overhead

Q : Deductions for regular income tax purposes

Q : Research costs and development costs

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: High low method-cost formula for maintenance

Reference No:- TGS01738419

Recent Questions Asked Accounting Basics

Q : Increase-decrease of company overall net operating income

Q : Federal income tax return for the current year

Q : Type of direct labor cost

Q : Total contribution margin in march

Q : High low method-cost formula for maintenance

Q : Manufacturing overhead costs in product costs

Q : Predetermined rate-underapplied overhead

Q : Deductions for regular income tax purposes

Q : Research costs and development costs

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