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

question 51

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 variable cost per machine hour for electricity is closest to?

• A)$0.98.
• B)$1.68.
• C)$0.40.
• D)$2.50.

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Definitions:

Topography

The arrangement of natural and artificial physical features of an area, including its relief, and the positions of streams, hills, and valleys.

Recent Earthquakes

Earthquakes that have occurred in the near past, often recorded and analyzed for seismic activity and patterns.

Streams

Bodies of water that flow over the land in channels, often fed by rainfall or snowmelt and emptying into bigger water bodies such as rivers or lakes.

Mine Dump

A pile or heap of waste material generated from the mining process, often containing rock, soil, and discarded ore.