Cost Estimation; High-Low Method Albedo Inc. manufactures


Question Description:

25

Cost Estimation; High-Low Method Albedo Inc. manufactures high-end replacement telescope lenses for amateur and professional astronomers who are seeking to upgrade the performance of their telescopes. You have just become employed as a staff accountant at Albedo and Jordan Coleman, the controller, has asked you to help with maintenance cost estimation for the lens manufacturing process. You review the manufacturing process and decide that the best cost driver for maintenance costs is labor hours. The data below are from the previous fiscal year for maintenance expense and labor hours: Month Maintenance Cost Labor Hours 1 $3,210 2,750  2  4,650 3,900  3  5,175 4,050  4  3,350 2,690  5  3,100 2,500  6  2,950 2,580  7  2,900 2,300  8  2,900 2,500  9  4,120 3,160 10  4,350 3,325 11  3,500 2,780 12  3,775 3,000 Required What is the cost equation for maintenance cost using the high-low method? wongda1
posted a question · Jun 01, 2016 at 11:06pm

Answer

25