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QUESTION 24 The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month
QUESTION 24
- The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data:
Month Cost of Electricity (Y) Direct Labor-Hours (X)
January $14,000 1,500
July $17,000 2,000
What would be the best equation using the high-low method?
- Y = $0.1667X
- Y = $4,000 + $0.1667X
- Y = $5,000 + $6X
- Y = $6X
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Financial & Managerial Accounting
Authors: Jan Williams
16th Edition
78111048, 978-0078111044
