Mathematics · Cost Accounting
A manufacturing corporation uses the High-Low Method to segregate semi-variable costs. At peak production, total maintenance cost was 4,50,000 units at 20,000 machine hours. At the lowest point, it was 3,10,000 units for 12,000 machine hours. If the company expects to operate at 15,000 machine hours in the next quarter, but anticipates a 10% increase in the variable cost rate and a 5% increase in total fixed costs, what would be the total estimated maintenance cost for that quarter?
- 13,91,000
- 23,75,500
- 33,82,750✓
- 43,78,250
Correct answer
3,82,750
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