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Shock 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
Shock 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 | $ 7,375 | 335 |
February | $ 9,200 | 805 |
March | $ 7,615 | 485 |
April | $ 7,560 | 405 |
May | $ 9,760 | 1,130 |
June | $ 9,105 | 780 |
What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?
Multiple Choice
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$9,910.
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$9,995.
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$9,865.
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$10,655.
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None of these answers are correct.
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