Reference: 06-07
Gargymal Company Would Like to Estimate the Variable

question 82

Multiple Choice

Reference: 06-07
Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last five months of operations. $$\begin{array} { | l | l | l | } \hline & \text { Machine Hours } & \text { Electrical Cost } \\\hline \text { August } & 1,000 & \$ 1,550 \\\hline \text { September } & 900 & 1,510 \\\hline \text { October } & 1,500 & 1,750 \\\hline \text { November } & 2,000 & 1,950 \\\hline \text { December } & 1,300 & 1,670 \\\hline\end{array}$$
-Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to?

• A)$1,290.00.
• B)$1,150.00.
• C)$1,306.50.
• D)$870.00.

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Definitions:

Lube Zerk

A fitting used on machinery to facilitate greasing of moving parts to reduce friction and wear.

Heavy-Duty Truck

A truck designed for high-load capacity and durability, typically used for commercial purposes, such as hauling goods or construction equipment.

Driveshaft

An assembly of one or more propeller shafts (hollow tubes) connected by universal joints (U-joints) to driven driveline components. In a typical tandem drive highway tractor, driveshafts are used to transmit torque from the transmission and forward differential carrier and between the two differential carriers.

Dynamically Balance

The process of balancing a rotating component while it is in motion to minimize vibrations and ensure smooth operation.