Cosco, Inc. has accumulated the following data for the cost of maintenance on its machinery for the last four months:
Assume that the relevant range includes all of the activity levels mentioned in this problem
4. Assuming Cosco Company uses the high-low method of analysis, if machine hours are budgeted to be 20,000 hours then the budgeted total maintenance cost would be expected to be:
Lowest machine hours = 15000 maintenance cost at this level = 22300
Computations shown you step-by-step.