Assuming Comco Uses the High-Low Method of Analysis, If Machine

question 185

Multiple Choice

Assuming Comco 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:

• A)$25,400
• B)$25,560
• C)$23,700
• D)$24,720

---

Definitions:

Journalize

The process of recording transactions in an accounting journal, documenting the financial effects of transactions and events.

Residual Value

The anticipated amount that an asset is expected to generate when it is sold at the conclusion of its useful lifespan.

Intangible Asset

An asset that is not physical in nature, such as patents, trademarks, and copyrights, having value due to its potential to generate economic benefits.

Natural Resource

Assets derived from the earth, such as minerals, forests, and water, which are used to produce goods and services.