Generally which of the following is the most accurate for managers to use to estimate the fixed and variable components of mixed cost?

• scattergraph

• high-Low method

• least-squares regression

Using the high-low method, what is the variable cost?

• $2 per direct-labor hour.

• $2.31 per direct-labor hour.

• $0.30 per direct-labor hour.

• $3.33 per direct-labor hour.

Excel depicts the least-squares regression results using the equation form _______.

• Y = ax + b

• Y = bx + a

• Y = a + b

Direct Maintenance Labor-Hours Cost Incurred 5,000 4,000 7,000 8,000 3,000 9,000 6,000 2,000 $ 2,900 2,500 3,200 3,400 2,100 4,000 3,100 1,900 January February March April May June July August Knowledge Check 01 Using the high-low method, what is the variable cost? $2 per direct-labor hour. $2.31 per direct-labor hour. $0.30 per direct-labor hour. $3.33 per direct-labor hour