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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Definitions:

Rational Emotive Behavior Therapy

A comprehensive, active-directive, philosophically and empirically based psychotherapy which focuses on resolving emotional and behavioral problems and disturbances to enable individuals to lead happier and more fulfilling lives.

Unnecessary Emotional Problems

Difficulties or disturbances in emotional functioning that could be avoided or are created without significant cause.

Unstated Belief

An implicit conviction or assumption that influences one's attitudes and behaviors without being directly expressed or acknowledged.