Nutt Industries electricity costs and machine hours over a six-month period follow: Using the high-low method,what is the formula that can be used to estimate electricity costs at different levels of volume?
A)Electricity costs = $2,800 + ($1.00 x number of machine hours)
B)Electricity costs = $2,600 + ($1.00 x number of machine hours)
C)Electricity costs = $400 + ($1.67 x number of machine hours)
D)Electricity costs = $3,600 + ($.60 x number of machine hours)

Question

Nutt Industries electricity costs and machine hours over a six-month period follow:  Using the high-low method,what is the formula that can be used to estimate electricity costs at different levels of volume?
A)Electricity costs = $2,800 + ($1.00 x number of machine hours) 
B)Electricity costs = $2,600 + ($1.00 x number of machine hours) 
C)Electricity costs = $400 + ($1.67 x number of machine hours) 
D)Electricity costs = $3,600 + ($.60 x number of machine hours)

Quizplus · Accepted Answer

The Answer of Nutt Industries electricity costs and machine hours over a six-month period follow:  Using the high-low method,what is the formula that can be used to estimate electricity costs at different levels of volume?
A)Electricity costs = $2,800 + ($1.00 x number of machine hours) 
B)Electricity costs = $2,600 + ($1.00 x number of machine hours) 
C)Electricity costs = $400 + ($1.67 x number of machine hours) 
D)Electricity costs = $3,600 + ($.60 x number of machine hours)

Nutt Industries Electricity Costs and Machine Hours Over a Six-Month