The following data pertains to activity and maintenance cost for two recent periods: Maintenance cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for maintenance cost is:
A)Y = $8,000 + $1.75 X
B)Y = $3.75 X
C)Y = $1,750 + $3.35 X
D)Y = $3.35 X

Question

The following data pertains to activity and maintenance cost for two recent periods:  Maintenance cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for maintenance cost is:
A)Y = $8,000 + $1.75 X 
B)Y = $3.75 X 
C)Y = $1,750 + $3.35 X 
D)Y = $3.35 X

Quizplus · Accepted Answer

The Answer of The following data pertains to activity and maintenance cost for two recent periods:  Maintenance cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for maintenance cost is:
A)Y = $8,000 + $1.75 X 
B)Y = $3.75 X 
C)Y = $1,750 + $3.35 X 
D)Y = $3.35 X

The Following Data Pertains to Activity and Maintenance Cost for Two