At the High Level of Activity in November 7000 Machine

question 116

Multiple Choice

At the high level of activity in November 7000 machine hours were run and power costs were $18000. In April a month of low activity 2000 machine hours were run and power costs amounted to $9000. Using the high-low method the estimated fixed cost element of power costs is

• A) $18000.
• B) $9000.
• C) $5400.
• D) $12600.

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