Electrical costs at one of Reifel Corporation's factories are listed below: Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to:
A)$0.12
B)$20.38
C)$7.98
D)$3.97

Question

Electrical costs at one of Reifel Corporation's factories are listed below:  Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to:
A)$0.12 
B)$20.38 
C)$7.98 
D)$3.97

Quizplus · Accepted Answer

The Answer of Electrical costs at one of Reifel Corporation's factories are listed below:  Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to:
A)$0.12 
B)$20.38 
C)$7.98 
D)$3.97

Electrical Costs at One of Reifel Corporation's Factories Are Listed