Question
Month Labour Hours (X) Overhead Costs (Y) Jan 198 $415 Feb 175 $383 Mar 288 $518 Apr 300 $533 May 187 $404 Jun 267 $492
| Month | Labour Hours (X) | Overhead Costs (Y) | |
| Jan | 198 | $415 | |
| Feb | 175 | $383 | |
| Mar | 288 | $518 | |
| Apr | 300 | $533 | |
| May | 187 | $404 | |
| Jun | 267 | $492 | |
| Jul | 100 | $370 | |
| Aug | 290 | $560 |
What is the equation of the line using the high-low method and this data?
$560 = 285 + (0.95X)
X = 285 + ($0.95Y)
Y = $285 + ($0.95X)
Y = $285 + (0.95 x 290)
| Month | # Machine Hours (X) | Maintenance Costs (Y) | |
| Jan | 3,000 | $440 | |
| Feb | 4,500 | $690 | |
| Mar | 8,000 | $510 | |
| Apr | 7,000 | $600 | |
| May | 6,000 | $550 | |
| Jun | 9,000 | $980 | |
| Jul | 3,500 | $840 | |
| Aug | 5,500 | $600 |
What does the slope represent?
the rate at which the X variable changes as a result of the Y variable
the rate at which the Y variable changes as a result of the X variable
the rate at which the dependent variable changes as a result of the fixed cost component
the rate at which the independent variable changes as a result of changes in the dependent variable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Core Concepts of Accounting Information Systems
Authors: Mark G. Simkin, Jacob M. Rose, Carolyn S. Norman
12th edition
1118022300, 978-1118022306
