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Exercise 4-5 High-Low Method

Exercise 4-5 High-Low Method
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ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 4: Cost Measurement for Management

Chapter 4 Exercise 4-5 High-Low Method [LO 2] Campus Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered:

Copy Machine
Month Repair Expense Copies Made
May $ 8,500 300,000
June 12,500 500,000
July 20,500 900,000
August 16,500 700,000
September 10,500 400,000

Required
Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity.

 

FILE: MS WORD

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