Electrical costs at one of Gotch 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) $0.15 per machine-hour; $35,115 per month
B) $9.11 per machine-hour; $1,249 per month
C) $9.43 per machine-hour; $35,406 per month
D) $6.57 per machine-hour; $10,728 per month

Question

Electrical costs at one of Gotch 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) $0.15 per machine-hour; $35,115 per month 
B) $9.11 per machine-hour; $1,249 per month 
C) $9.43 per machine-hour; $35,406 per month 
D) $6.57 per machine-hour; $10,728 per month

Quizplus · Accepted Answer

The Answer of Electrical costs at one of Gotch 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) $0.15 per machine-hour; $35,115 per month 
B) $9.11 per machine-hour; $1,249 per month 
C) $9.43 per machine-hour; $35,406 per month 
D) $6.57 per machine-hour; $10,728 per month

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