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

question 60

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.
What is the estimated total cost at an operating level of 1,180 hours?

• A)$10,060.
• B)$10,145.
• C)$10,015.
• D)$10,805. Total cost = $6,520 + ($3.00 x 1,180)= $10,060

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Definitions:

Seismographs

Seismographs are instruments that measure and record the motion of the ground, including those of seismic waves generated by earthquakes, volcanic eruptions, and other seismic sources.

Plate Divergence

A tectonic process involving the moving apart, or divergence, of two tectonic plates.

Oceanic Trench

Deep depressions in the ocean floor caused by the subduction of one tectonic plate under another.

Magmatic Belt

A region characterized by extensive igneous rock formation, often associated with plate boundaries and volcanic activity.