Comco, Inc

Multiple Choice

Comco, Inc.has accumulated the following data for the cost of maintenance on its machinery for the last four months: Assume that the relevant range includes all of the activity levels mentioned in this problem. 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