Indicate whether each of the following statements about the high-low method is true or false: a. - b. The formula for the high-low method is (Highest Cost - Lowest Cost) (Highest Activity - Lowest Activity) The high-low method can be expressed as Change in Cost/Change in Activity = Fixed Cost per Unit The high-low method forces a line between the two most extreme activity data points. The high-low method relies on the fact that the slope of a line is calculated as run over rise." When using the high-low method, the slope of the line is interpreted as the fixed-cost component of a mixed cost. C. 2 d. e. Castle Inc. has the following information: Month Amount Cost A January $ 56,000 February $78,400 $ Units 44,800 89,600 Month Cost B January February Amount $32,000 $ 64,000 Units 64,000 128,000 Cost C Month January February Amount $ 28,000 $ 28,000 Units 40,000 80,000 Indicate whether these costs are variable, fixed, or mixed. Cost A Cost B Cost C Steve Silversmith produces unique and exclusive sterling silver rings, pendants, buckles, and chains. Steve pays one supervisor to oversee the work performed by several part-time silversmiths. He pays each silversmith to work 20 hours per week or 40 hours week, depending on production demand. He also hires a jewelry expert to perform quality assurance inspections and pays her based on the weight (per ounce of silver) of each piece inspected. The controller and the sales manager are discussing potential price increases due to the increasing cost of silver and increases in other costs. Required: The following are several costs they are discussing. Indicate whether each cost is a variable, fixed, step, or mixed cost within Steve's relevant range of activity. od 0 5 a. Depreciation on production equipment. b. Supervisor salary. Packaging (each piece is packaged in a designer carton). Silver Part-time labor (silversmith). Production facility utilities. g- Quality assurance h. Mortgage on the production facility