Question
Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of
Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.
| Month | Cost(Y) | Hours(H) | ||||
| January | $ | 8,620 | 425 | |||
| February | $ | 10,500 | 840 | |||
| March | $ | 8,640 | 520 | |||
| April | $ | 8,860 | 440 | |||
| May | $ | 10,780 | 1,145 | |||
| June | $ | 10,230 | 815 | |||
What is the estimated total cost at an operating level of 1,180 hours, using the high-low method? (Round variable cost per unit to 2 decimal places.)
rev: 10_11_2019_QC_CS-185084
Multiple Choice
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$10,885.
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$10,970.
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$10,840.
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$11,630.
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
978-1119372936
