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KM Company is developing a flexible budget and needs to categorize factory maintenance costs into fixed and variable components. The document provides maintenance cost and machine hours data for six months, from January to June. This data will assist in analyzing the relationship between maintenance costs and machine hours for budgeting purposes.

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kiminshi18
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20 views1 page

Cas

KM Company is developing a flexible budget and needs to categorize factory maintenance costs into fixed and variable components. The document provides maintenance cost and machine hours data for six months, from January to June. This data will assist in analyzing the relationship between maintenance costs and machine hours for budgeting purposes.

Uploaded by

kiminshi18
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

KM Company is preparing a flexible budget for next year and requires a breakdown of the factory maintenance cost into

the
fixed and variable elements.

The maintenance cost and machine hours (the selected cost driver) for the past six months are as follows:

Maintenance Cost Machine Hours

January 15,500 1,800

February 10,720 1,230

March 15,100 1,740

April 15,840 2,190

May 14,800 1,602

June 10,600 1,590

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