Georgia Meadows Company Uses the High-Low Method to Analyze Production

question 72

Multiple Choice

Georgia Meadows Company uses the high-low method to analyze production costs. The following information relates to the production data for the first six months of the year. $\begin{array}{llll}\text { Month } & \operatorname{Cost}(\mathrm{Y}) &\operatorname{Hours}(\mathrm{H}) \\\text { January } & \$ 8,542 & 6,530 \\\text { February } & \$ 7,750 & 5,950 \\\text { March } & \$ 9,700 & 7,500 \\\text { April } & \$ 7,435 & 5,700 \\\text { May } & \$ 7,200 & 5,500 \\\text { June } & \$ 9,263 & 6,750\end{array}$ How should the cost function be properly stated using the high-low method?

• A) Y = $1,025 + $1.25H.
• B) Y = $875 + $1.05H.
• C) Y = $325 + $1.25H.
• D) Y = $9,263 + $0.162H.

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