Northlake inc uses the high-low method to analyze cost, Financial Accounting

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Northlake inc uses the high-low method to analyze cost

Northlake, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:

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Financial Accounting: Northlake inc uses the high-low method to analyze cost

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