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At the high level of activity in November, 7000 machine hours were used and power costs were $18000. In April, a month of low activity,
At the high level of activity in November, 7000 machine hours were used and power costs were $18000. In April, a month of low activity, 1000 machine hours were used and power costs were $4500. Using the high-low method, the estimated fixed cost component of power costs is
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