Nutt Industries Electricity Costs and Machine Hours Over a Six-Month

question 33

Multiple Choice

Nutt Industries electricity costs and machine hours over a six-month period follow: Using the high-low method, what is the formula that can be used to estimate electricity costs at different levels of volume?

• A)Electricity costs = $2,800 + ($1.00 x number of machine hours)
• B)Electricity costs = $2,600 + ($1.00 x number of machine hours)
• C)Electricity costs = $400 + ($1.67 x number of machine hours)
• D)Electricity costs = $3,600 + ($.60 x number of machine hours)

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Definitions:

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