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The data below relates to SunRise for January and February of the current year.                                                              January                       February Maintenance hours                     4,000                           5,000 Maintenance cost                    $70,000                       $80,000   January and February were the lowest and highest activity levels respectively and SunRise uses the high-low method to analyze cost behaviour. Which of the following statement is true?   Multiple Choice   The fixed maintenance cost is $40,000 per month   The variable maintenance costs is $12 per hour   The variable maintenance cost is $18 per hour   The fixed maintenance cost is $30,000 per month   The variable maintenance cost is $16 per hour

The data below relates to SunRise for January and February of the current year.                                                              January                       February Maintenance hours                     4,000                           5,000 Maintenance cost                    $70,000                       $80,000   January and February were the lowest and highest activity levels respectively and SunRise uses the high-low method to analyze cost behaviour. Which of the following statement is true?   Multiple Choice   The fixed maintenance cost is $40,000 per month   The variable maintenance costs is $12 per hour   The variable maintenance cost is $18 per hour   The fixed maintenance cost is $30,000 per month   The variable maintenance cost is $16 per hour

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 1CMA
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The data below relates to SunRise for January and February of the current year.

           

                                                 January                       February

Maintenance hours                     4,000                           5,000

Maintenance cost                    $70,000                       $80,000

 

January and February were the lowest and highest activity levels respectively and SunRise uses the high-low method to analyze cost behaviour. Which of the following statement is true?

 

Multiple Choice
  •  
    The fixed maintenance cost is $40,000 per month
  •  
    The variable maintenance costs is $12 per hour
  •  
    The variable maintenance cost is $18 per hour
  •  

    The fixed maintenance cost is $30,000 per month

  •  
    The variable maintenance cost is $16 per hour
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