Question
Presented below are the production data for the mixed costs incurred by Gore Industries. Month Cost Units March $6,300 4,500 April 6,624 5,000 May 6,450
Presented below are the production data for the mixed costs incurred by Gore Industries.
| Month | Cost | Units |
| March | $6,300 | 4,500 |
| April | 6,624 | 5,000 |
| May | 6,450 | 4,800 |
| June | 9,500 | 8,500 |
| July | 7,800 | 6,800 |
| August | 8,336 | 7,600 |
Gore Industries uses the high-low method to estimate mixed costs.
How would the cost function be stated?
| Y = $2,700 + $0.80X |
| Y = $2,700 + $1.40X |
| Y = $6,300 + $0.80X |
| Y = $9,500 + $1.40 X |
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An Introduction To Statistical Sampling In Auditing
Authors: Dan M. Guy
1st Edition
0471042323, 978-0471042327
