Question One
High-Low Method, High—Low
Method, Cost Formulas (LO 3)
During the past year, the high and low
use of three different resources for Wilson Trucking occurred in
July and April.
The resources are truck depreciation,
fuel, and truck maintenance.
The number of kilometres travelled is
the driver. The total costs of the three resources and the related
number of truck kilometres are as follows:
Resource
Truck Kilometres Total Cost ($)
Truck depreciation:
High
46,000,000 2,800,000
Low
32,400,000 2,800,000
Fuel:...