Question
Tillman Company uses the high-low method to estimate its cost function. The information for the current year is provided below: Machine-hours Costs Highest observation of
Tillman Company uses the high-low method to estimate its cost function. The information for the current year is provided below:
Machine-hours Costs
Highest observation of cost driver 2,500 $300,000
Lowest observation of cost driver 1,500 $ 220,000
What is the estimated cost function for the above data?
| A. | y = 300,000 +120X | |
| B. | y = 220,000 +147X | |
| C. | y = 100,000 +80X | |
| D. | y = 130X |
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Management Accounting For Decision Makers
Authors: Peter Atrill
9th Edition
9781292204574
