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Questions 44 and 45 Are Based on the Maintenance Expenses

question 79

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Questions 44 and 45 are based on the maintenance expenses of a company,which are to be analyzed for purposes of constructing a flexible budget.Examination of past records disclosed the following costs and volume measures: Questions 44 and 45 are based on the maintenance expenses of a company,which are to be analyzed for purposes of constructing a flexible budget.Examination of past records disclosed the following costs and volume measures:   Using the high-low technique,estimate the annual fixed cost for maintenance expenditures: A) $447,360. B) $240,000. C) $230,400. D) $384,000. Fixed cost = ($39,200 x 12 months) - (24,000 x 12x $0.80) = $240,000
Using the high-low technique,estimate the annual fixed cost for maintenance expenditures:

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