What if maintenance hours are estimated, Accounting Basics

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What if maintenance hours are estimated

Problem: The following data relate to the Tori Company for May and August: May August Maintenance hours 20,000 25,000 Maintenance cost $ 1,322,000 $ 1,417,000 May and August were the lowest and highest activity levels, and Tori uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 23,000 hours in October, then:

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Accounting Basics: What if maintenance hours are estimated

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