Question
The following data pertains to activity and utility cost for two recent periods: Activity level (units) 15,000 12,000 Utility cost $24,750 $21,000 Utility cost is
The following data pertains to activity and utility cost for two recent periods:
| Activity level (units) | 15,000 | 12,000 |
|---|---|---|
| Utility cost | $24,750 | $21,000 |
Utility cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for utility cost is: (Round your intermediate calculations to 2 decimal places.)
| Y = $6,000 + $1.25 X | ||
| Y = $1.65 X | ||
| Y = $3,750 + $1.75 X | ||
| Y = $1.75 X |
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Understand Accounting
Authors: Claude Hitching, Derek Stone
1st Edition
0273018833, 978-0273018834
