Question
Taunton Company uses the high-low method to estimate its cost function. The information for 2017 is provided below: Machine-hours Labor Costs Highest observation of cost
Taunton Company uses the high-low method to estimate its cost function. The information for 2017 is provided below:
| Machine-hours | Labor Costs | ||
| Highest observation of cost driver | 4,000 | $332,000 | |
| Lowest observation of cost driver | 3,000 | $312,000 |
What is the estimated cost function for the above data?
A.
y = 312,000 + 104X
B.
y = 332,000 + 83X
C.
y = 92.00X
D.
y = 252,000 + 20.00X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Security Audit And Control Features SAP ERP
Authors: Isaca
4th Edition
1604205806, 978-1604205800
