Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue Denim Company makes blue jeans. The company controller wants to calculate the fixed and variable cost associate with electricity used in the factory. In

Blue Denim Company makes blue jeans. The company controller wants to calculate the fixed and variable cost associate with electricity used in the factory. In March, the highest level of activity of 600 machines hours, the electric cost was $4,100. In June, the lowest level of activity of 350 machines hours, the electric cost was $2,575. The total fixed cost estimation using the high-low method is _____.

A. $1,525

B. $2,575

C. $3,660

D. $4,100

E. none of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethics in Accounting A Decision Making Approach

Authors: Gordon Klein

1st edition

1118928334, 978-1118928332

More Books

Students also viewed these Accounting questions

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago