At the High Level of Activity in November, 7,000 Machine

question 64

Multiple Choice

At the high level of activity in November, 7,000 machine hours were run and power costs were $16,000.In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $8,000.Using the high-low method, the estimated fixed cost element of power costs is

• A)$16,000.
• B)$8,000.
• C)$4,800.
• D)$11,200.

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