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 | $ | 8,220 | 365 |
| February | $ | 10,000 | 800 |
| March | $ | 8,240 | 480 |
| April | $ | 8,360 | 400 |
| May | $ | 10,380 | 1,085 |
| June | $ | 9,750 | 775 |
How should the cost function be properly stated using the high-low method?
rev: 10_11_2019_QC_CS-185082
Multiple Choice
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Y = $6,630 + $2.00H.
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Y = $7,125 + $3.00H.
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Y = $6,690 + $2.00H.
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Y = $6,855 + $3.00H.
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
5th edition
9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169
