Mazoon Company decided to use the high- low cost estimation method to analyze its mixed costs. During the year 2020, the highest level of activity at peak season was in August (40,500 labor hours for a total cost of $120,400) and the lowest level of activity was in November (13,000 labor hours for a total cost of $79,150). What is the estimated total cost for Mazoon Company at an expected operating level of 30,000 labor hours? a. None of the answers given b. $101,200 c. $107,650 d. $45,000 e. $99,775

Mazoon Company decided to use the high- low cost estimation method to analyze its mixed costs. During the year 2020, the highest level of activity at peak season was in August (40,500 labor hours for a total cost of $120,400) and the lowest level of activity was in November (13,000 labor hours for a total cost of $79,150). What is the estimated total cost for Mazoon Company at an expected operating level of 30,000 labor hours? a. None of the answers given b. $101,200 c. $107,650 d. $45,000 e. $99,775

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CMA

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