#11-12

at To 11. Werner Brothers, Inc., used the high-low method to derive its cost formula for electrical power cost According to the cost formula, the variable cost per unit of activity is $2 per machine-hour. Total electrical power cost at the high level of activity was $9,400 and at the low level of activity was $9,000. If the high level of activity was 2.200 machine hours, then the low level of activity was: A. 1,800 machine hours B. 1,900 machine hours C. 2,000 machine hours D. 1,700 machine hours Davis Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. 12. Production volume 1,000 units 2.000 units Direct materials Direct labor Manufacturing overhead $48,500 $62,200 $44,200 $88,400 $37,300 $74,600 The best estimate of the total monthly fixed manufacturing cost is: A. $130,000 B. $177,600 C. $34,800 D. $225,200