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At the high level of activity in November, 5000 machine hours were run and power costs were $18000. In April, a month of low activity,
At the high level of activity in November, 5000 machine hours were run and power costs were $18000. In April, a month of low activity, 1000 machine hours were run and power costs amounted to $9000. Using the high-low method, the estimated fixed cost element of power costs is
a) $18000.
b) $9000.
c) $6750.
d) $11250.
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