Use the information below to answer the following question(s).
The Monroe Company uses the high-low method to estimate the cost function. The information for the current year is provided below.

-What is the estimate of Monroe's cost function when 200 machine hours are used?
A) $1,840.00
B) $1,997.50
C) $2,280.00
D) $3,333.33
E) $3,680.00

Question

Use the information below to answer the following question(s).
The Monroe Company uses the high-low method to estimate the cost function. The information for the current year is provided below.
 
-What is the estimate of Monroe's cost function when 200 machine hours are used?
A) $1,840.00 
B) $1,997.50 
C) $2,280.00 
D) $3,333.33 
E) $3,680.00

Quizplus · Accepted Answer

y = $2,080 + ($8 × 200) = $3,680

Use the Information Below to Answer the Following Question(s)