Longberry Corporation Manufactures and Sells Party Items Let
a = Fixed Production Costs Per Month
B =

question 185

Multiple Choice

Longberry Corporation manufactures and sells party items. The following representative direct labor hours and production costs are provided for a four-month period: $\begin{array}{ccc}\text { Month } & \text { Direct Labor Hours } & \text { Production Costs }\\\hline\text { May } & 3,600 & \$ 15,000 \\\text { June } & 4,800 & 17,500 \\\text { July } & 6,000 & 20,000 \\\text { August } & 4,800 & 17,500 \\\text { Total } & 19,200 & \$ 70,000\end{array}$
Let
A = Fixed production costs per month
B = Variable production costs per direct labor hour
N = Number of months
X = Direct labor hours per month
Y = Total monthly production costs
S = Summation
Using the high-low method, what is the cost formula for estimating costs?

• A)Total cost = $20,000 + $2.08X
• B)Total cost = $7,500 + $2.08X
• C)Total cost = $5,000 + 2.08X
• D)Total cost = $2.08X

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Definitions:

Trephination

An ancient surgical procedure involving the drilling or scraping of a hole into the skull, once believed to treat various ailments or release evil spirits.

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Methods of treating illness or disorders that rely on religious or mystical interventions rather than medical science.

Early Treatments

Interventions or medicines applied at the initial stages of a disease or condition intended to cure, alleviate, or prevent the development of further complications.

Middle Ages

A historical period in Europe, roughly from the 5th to the late 15th century, marked by feudalism, the rise of Christianity, and the emergence of the modern nation-state.