Gribble Company's High and Low Level of Activity Last Year

question 122

Multiple Choice

Gribble Company's high and low level of activity last year was 60000 units of product produced in May and 20000 units produced in November. Machine maintenance costs were $156000 in May and $60000 in November. Using the high-low method determine an estimate of total maintenance cost for a month in which production is expected to be 45000 units.

• A) $135000
• B) $144000
• C) $117000
• D) $120000

---

Definitions:

AASB 6/IFRS 6 Disclosure

Requirements related to the exploration for and evaluation of mineral resources, detailing financial reporting standards for these activities.

E&E Assets

Exploration and Evaluation Assets, specific to the extractive industries, representing capital expenditures on the exploration and evaluation of mineral resources.

Pre-exploration Costs

Expenses incurred before the actual exploration activity begins, such as for initial research or permitting.

IASB Extractive Activities

Refers to the guidance provided by the International Accounting Standards Board on the accounting for and reporting of extraction activities.