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Ken-Ken Company has determined that their maintenance cost is a mixed cost and aims to perform...

Ken-Ken Company has determined that their maintenance cost is a mixed cost and aims to perform segregation technique. They observed the maintenance cost over a six-month period according to behavior with machine hours, their main cost driver. Use high-low method and compute the following below.

Month Maintenance Cost Machine Hours

January 5,400.00   900.00

February 6,000.00 1,050.00

March 7,200.00 1,500.00

April 9,000.00 2,070.00

May 6,400.00 1,200.00

June 11,000.00 2,100.00


1. Variable cost rate per hour

2. Fixed cost

3. Expected total cost at activity level of 1,750 hours.

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