Answer the following questions using the information below:
Syosis Company uses the high-low method to estimate its cost function. The information for 2015 is provided below:
$\begin{array}{lll}&\text { Machine-hours }& \text { Costs }\
\text { Highest observation of cost driver } & 2,500 & \$ 300,000 \
\text { Lowest observation of cost driver } & 1,500 & \$ 220,000
\end{array}$
-What is the slope coefficient?
A) $120.00
B) $147.00
C) $80.00
D) $130.00

Question

Answer the following questions using the information below:
Syosis Company uses the high-low method to estimate its cost function. The information for 2015 is provided below:
 $\begin{array}{lll}&\text { Machine-hours }& \text { Costs }\
\text { Highest observation of cost driver } & 2,500 & \$ 300,000 \
\text { Lowest observation of cost driver } & 1,500 & \$ 220,000
\end{array}$
-What is the slope coefficient?
A) $120.00
B) $147.00
C) $80.00
D) $130.00

Quizplus · Accepted Answer

The slope coefficient is calculated as the change in cost divided by the change in machine-hours: ($300,000 - $220,000) / (2,500 - 1,500) = $80.00 per machine-hour.

Answer the Following Questions Using the Information Below: Syosis Company

Answer the Following Questions Using the Information Below:
Syosis Company