Question
Given the following cost and activity observations for Alpha Zone Companys utilities: Cost Equipment Hours May $8,300 15,000 June 10,400 20,000 July 7,200 12,000 August
Given the following cost and activity observations for Alpha Zone Companys utilities:
|
| Cost | Equipment Hours | ||
| May | $8,300 |
| 15,000 |
|
| June | 10,400 |
| 20,000 |
|
| July | 7,200 |
| 12,000 |
|
| August | 9,500 |
| 18,000 |
|
Using the high low method, what are the fixed costs?
| a. | $600 |
| b. | $0 |
| c. | $960 |
| d. | $2,400 |
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Financial Accounting
Authors: David Perkins
4th Edition
111925700X, 978-1119257004
