Electrical costs at one of Vanartsdalen 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 to estimate the variable and fixed components of this cost,these estimates would be closest to:
A)$14.41 per machine-hour;$33,832 per month
B)$0.11 per machine-hour;$33,957 per month
C)$9.35 per machine-hour;$11,885 per month
D)$11.30 per machine-hour;$7,229 per month

Question

Electrical costs at one of Vanartsdalen 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 to estimate the variable and fixed components of this cost,these estimates would be closest to:
A)$14.41 per machine-hour;$33,832 per month 
B)$0.11 per machine-hour;$33,957 per month 
C)$9.35 per machine-hour;$11,885 per month 
D)$11.30 per machine-hour;$7,229 per month

Quizplus · Accepted Answer

The Answer of Electrical costs at one of Vanartsdalen 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 to estimate the variable and fixed components of this cost,these estimates would be closest to:
A)$14.41 per machine-hour;$33,832 per month 
B)$0.11 per machine-hour;$33,957 per month 
C)$9.35 per machine-hour;$11,885 per month 
D)$11.30 per machine-hour;$7,229 per month

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