Question
At the high level of activity in November, 5000 machine hours were used and power costs were $13000. In April, a month of low activity,
At the high level of activity in November, 5000 machine hours were used and power costs were $13000. In April, a month of low activity, 1000 machine hours were used and power costs were $6000. Using the high-low method, the estimated fixed cost component of power costs is
A. $4250
B. $6000
C. $13000
D. $8750
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
