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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
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