The managerial accountant at Hampson Company reported the following information:

Use the high-low method to and use the highest observation of the cost driver to compute the constant a,using a slope coefficient of $13.92 per machine hour.
A = y - BX
At the highest observation of the cost driver,the constant,a,is:
A)$75.60
B)$76.80
C)$75.62
D)$79.60
E)$81.24

Question

The managerial accountant at Hampson Company reported the following information:

Use the high-low method to and use the highest observation of the cost driver to compute the constant a,using a slope coefficient of $13.92 per machine hour.
A = y - BX
At the highest observation of the cost driver,the constant,a,is:
A)$75.60 
B)$76.80 
C)$75.62 
D)$79.60 
E)$81.24

Quizplus · Accepted Answer

D)[$1,750 - ($13.92 × 120)] = $1,670.40
[$1,750 - $1,670.40] = $79.60

The Managerial Accountant at Hampson Company Reported the Following Information