A cost analyst collected the following information for the Machining Department:
Observation Machine-hours Total Operating Costs

Required:
a. Determine the estimating cost function with machine-hours as the cost driver using the high-low method.
b. If December's estimated machine-hours total 8,400, what is the estimated cost of the Machining Department?

Question

A cost analyst collected the following information for the Machining Department:
Observation Machine-hours Total Operating Costs
  
Required:
a. Determine the estimating cost function with machine-hours as the cost driver using the high-low method.
b. If December's estimated machine-hours total 8,400, what is the estimated cost of the Machining Department?

Quizplus · Accepted Answer

The Answer of A cost analyst collected the following information for the Machining Department:
Observation Machine-hours Total Operating Costs
  
Required:
a. Determine the estimating cost function with machine-hours as the cost driver using the high-low method.
b. If December's estimated machine-hours total 8,400, what is the estimated cost of the Machining Department?

A Cost Analyst Collected the Following Information for the Machining