Northridge Inc

question 65

Multiple Choice

Northridge Inc., uses the high-low method to analyze cost behaviour. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which is still within the relevant range, the total maintenance costs averaged $9.75 per machine hour. On the basis of this information, the company's fixed maintenance costs are:

• A)$20,000.
• B)$24,000.
• C)$90,000.
• D)$210,000.
• E)$234,000.

Calculate variable and fixed selling, and administrative expenses to prepare a comprehensive expense budget.

Estimate the financial position at the end of a period in terms of accounts receivable, accounts payable, and inventory balances.

Analyze the effects of depreciation and other non-cash expenses on budgeting.

Prepare and analyze the budgeted income statement components like gross margin, net operating income, and net income.

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