Mint Company is preparing a flexible budget for next year and requires a breakdown of the factory maintenance cost into fixed and variable elements. The maintenance costs and machine hours (the selected cost driver) for the past 6 months are as follows: January - maintenance cost (P15,500); machine hours (1,800) February - maintenance cost (P10,720); machine hours (1,230) March - maintenance cost (P15,100); machine hours (1,740) April - maintenance cost (P15,840); machine hours (2,190) May - maintenance cost (P14,800); machine hours (1,602) June - maintenance cost (P10,600); machine hours (1,590) The average annual fixed maintenance cost amounts to: Hide answer choices A) P49,920 B) P4,160 P5,120 D) P8,320

Mint Company is preparing a flexible budget for next year and requires a breakdown of the factory maintenance cost into fixed and variable elements. The maintenance costs and machine hours (the selected cost driver) for the past 6 months are as follows: January - maintenance cost (P15,500); machine hours (1,800) February - maintenance cost (P10,720); machine hours (1,230) March - maintenance cost (P15,100); machine hours (1,740) April - maintenance cost (P15,840); machine hours (2,190) May - maintenance cost (P14,800); machine hours (1,602) June - maintenance cost (P10,600); machine hours (1,590) The average annual fixed maintenance cost amounts to: Hide answer choices A) P49,920 B) P4,160 P5,120 D) P8,320

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 6E: The fixed overhead budgeted for Ranier Industries at an expected capacity of 500,000 units is...

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