Taunton Company Uses the High-Low Method to Estimate Its Cost

question 129

Multiple Choice

Taunton Company uses the high-low method to estimate its cost function. The information for 2017 is provided below:

What is the estimated total cost when 1,900 machine-hours are used?

• A) $509,600
• B) $290,000
• C) $489,700
• D) $157,700

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Definitions:

Larynx

The hollow muscular organ forming an air passage to the lungs and holding the vocal cords; commonly known as the voice box.

Coughing Up Blood

involves expelling blood or blood-streaked sputum from the lungs or airway through coughing, a symptom of various medical conditions.

Pleural Cavity

The thin fluid-filled space between the two layers of the pleura surrounding each lung.

Air

The undetectable blend of gases encircling the Earth, predominantly made up of oxygen and nitrogen.