Pearson Electric Company Uses the High-Low Method to Analyze Mixed

question 5

Multiple Choice

Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year. $\begin{array}{llll}\text { Month } & \operatorname{Cost}(\mathrm{Y}) &\operatorname{Hours}(\mathrm{H}) \\\text { January } & \$ 7,300 & 260 \\\text { February } & \$ 9,125 & 730 \\\text { March } & \$ 7,540 & 410 \\\text { April } & \$ 7,485 & 330 \\\text { May } & \$ 9,460 & 980 \\\text { June } & \$ 9,030 & 705\end{array}$ What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?

• A) $10,060.
• B) $10,145.
• C) $10,015.
• D) $10,805.

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Definitions:

Immediate Awareness

The state of being consciously and directly cognizant of events, stimuli, or sensations as they occur in real-time.

Personality Structure

The organization of enduring personality traits and patterns that influence behavior and interactions.

Birth

The process of being born or giving birth, marking the beginning of life outside the womb.

Id

Within the framework of psychoanalytic theory, this aspect of the mind is where the natural instinctual drives and fundamental processes become apparent.