The following data pertains to activity and maintenance costs for - 11270

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yousafbhutta

yousafbhutta

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  • Posted on: Wed 20 Jun, 2012
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Request Description

The following data pertains to activity and maintenance costs for two recent years:
Using the high-low method, the cost formula for maintenance would be:
                                   Year 2 Year 1
Activity level in units…….12,000  8,000
Maintenance cost ………… $15,000  $12,000

  •         $1.50 per unit.
  •         $1.25 per unit.
  •         $3,000 plus $1. 50 per unit.
  •         $6,000 plus $0. 75 per unit.

 

Solution Description

 

 

 

The following data pertains to activity and maintenance costs for two recent years:
Using the high-low method, the cost formula for maintenance would be: