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  • Topic 2 Cost Behaviour Extra Questions (Feb 17)

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    Thirusha balamurali
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    This document provides extra questions related to cost behavior for a factory maintenance case study. It includes data on monthly machine hours and maintenance costs over 6 months. It asks to (1) use the high-low method to estimate an equation for the factory's maintenance costs based on machine hours as the cost driver, and (2) use the estimated equation to calculate the predicted maintenance cost if machine hours were 80,000 for a month.

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    This document provides extra questions related to cost behavior for a factory maintenance case study. It includes data on monthly machine hours and maintenance costs over 6 months. It asks to (1) use the high-low method to estimate an equation for the factory's maintenance costs based on machine hours as the cost driver, and (2) use the estimated equation to calculate the predicted maintenance cost if machine hours were 80,000 for a month.

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    © All Rights Reserved
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    7 views1 page

    Topic 2 Cost Behaviour Extra Questions (Feb 17)

    Uploaded by

    Thirusha balamurali
    This document provides extra questions related to cost behavior for a factory maintenance case study. It includes data on monthly machine hours and maintenance costs over 6 months. It asks to (1) use the high-low method to estimate an equation for the factory's maintenance costs based on machine hours as the cost driver, and (2) use the estimated equation to calculate the predicted maintenance cost if machine hours were 80,000 for a month.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Extra Questions

    Topic 2
    COST BEHAVIOUR EXTRA QUESTIONS (FEB 17)
    Question 1
    (a) The following data is related to maintenance cost for a factory.

    Machine Maintenance
    Month hours cost
    $
    July 45,000 110,000
    August 50,000 115,000
    September 70,000 173,000
    October 60,000 135,000
    November 75,000 170,000
    December 65,000 145,000

    Required:
    i. Use high-low method to estimate factory’s maintenance cost and
    express it in equation form. Assume that machining hours is the cost
    driver.
    ii. Use the equation that you have developed in part (i), estimate the
    maintenance cost for a month in which 80,000 machine hours are
    worked.

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