Question
Georgia Meadows Company uses the high-low method to analyze production costs. The following information relates to the production data for the first six months of
Georgia Meadows Company uses the high-low method to analyze production costs. The following information relates to the production data for the first six months of the year.
| Month | Cost(Y) | Hours(H) | |
| January | $ | 9,742 | 6,650 |
| February | $ | 8,750 | 6,030 |
| March | $ | 10,900 | 7,620 |
| April | $ | 8,435 | 5,780 |
| May | $ | 8,400 | 5,620 |
| June | $ | 10,103 | 6,830 |
How should the cost function be properly stated using the high-low method?
Multiple Choice
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Y = $2,075 + $1.25H.
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Y = $1,925 + $1.05H.
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Y = $1,375 + $1.25H.
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Y = $10,313 + $0.162H.
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Stuart Manson,
4th ISA Edition
1844806782, 9781844806782
