CourseLover

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Algebra,Applied Sciences,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Engineering,Health & Medical,HR Management,Law,Marketing,Math,Physics,Psychology,Programming,Science Hide all
Teaching Since: May 2017
Last Sign in: 286 Weeks Ago, 1 Day Ago
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  • MCS,MBA(IT), Pursuing PHD
    Devry University
    Sep-2004 - Aug-2010

Experience

  • Assistant Financial Analyst
    NatSteel Holdings Pte Ltd
    Aug-2007 - Jul-2017

Category > Accounting Posted 21 Dec 2017 My Price 10.00

how to compute for the Maintenance cost

I am confused upon how to compute for the Maintenance cost at the high level activity. Would like to have the steps please

 

Problem 2-17 High-Low Method; Predicting Cost [LO3, LO4] Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility. These costs (in Argentinian pesos) at high and low levels of activity over recent years are given below: Level of Activity Low High Machine-hours 66,900 89,200 Total factory overhead costs 274,030 pesos 311,940 pesos The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 66,900 machine-hours level of activity as follows: Indirect materials (variable) 100,350 pesos Rent (fixed) 129,000 Maintenance (mixed) 44,680 Total factory overhead costs 274,030 pesos For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the factory overhead cost of 311,940 pesos at the high level of activity consists of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the 311,940 pesos cost consists of indirect materials and rent. Think about the behavior of variable and fixed costs.) (Do not round intermediate calculations. Omit the "pesos" sign in your response.) Maintenance cost at high level of activity pesos
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Answers

CourseLover
(12)
Status NEW Posted 21 Dec 2017 02:12 PM My Price 10.00

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