The following data has been assembled for VaVaVoom Company. Use the high- low method. $$\begin{array} { l l }
\text { Cost } & \text { Hours } \
\$ 24,400 & 2,000 \
34,000 & 2,600 \
31,280 & 2,450 \
36,400 & 3,000 \
44,160 & 3,900
\end{array}$$
The total fixed cost is:
A) $ \$ 21,360 $
B) $ \$ 3,600 $
C) $ \$ 10,112 $
D) $ \$ 26,672 $

Question

The following data has been assembled for VaVaVoom Company. Use the high- low method. $$\begin{array} { l l } 
\text { Cost } & \text { Hours } \
\$ 24,400 & 2,000 \
34,000 & 2,600 \
31,280 & 2,450 \
36,400 & 3,000 \
44,160 & 3,900
\end{array}$$ 
The total fixed cost is:
A) $ \$ 21,360 $
B) $ \$ 3,600 $
C) $ \$ 10,112 $
D) $ \$ 26,672 $

Quizplus · Accepted Answer

The high-low method calculates the variable cost per hour as $(44,160 - 24,400) / (3,900 - 2,000) = 10$. Using the highest point, the fixed cost is $44,160 - (10 \times 3,900) = 3,600$.

The Following Data Has Been Assembled for VaVaVoom Company The Total Fixed Cost Is: A)

The Following Data Has Been Assembled for VaVaVoom Company The Total Fixed Cost Is:
A)