Compute the company fixed maintenance costs

Reference no: EM132717541

Question - Northridge, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged P10.50 per hour. When activity jumped to 22,000 machine hours, which was still within the relevant range, the average total cost per machine hour was P9.75. On the basis of this information, compute the company fixed maintenance costs?

A. P90,000

B. P234,000

C. P24,000

D. P165,000

Reference no: EM132717541

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