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Determine the total cost

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Reference no: EM133113723

Question - Placente Company uses the high-low method to analyze cost behavior. The company observed that at 10,000 machine hours of activity, total maintenance costs averaged P10.00 per hour. When activity jumped to 15,000 machine hours, which was still within the relevant range, the average cost per machine hour totaled P8.50. On the basis of this information, if Placente plans to incur 13,000 machine hours, determine the total cost?

a. P120,250

b. P116,500

c. P127,750

d. P118,300

Reference no: EM133113723

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