Microdash Company Uses the High-Low Method to Analyze Mixed Costs

question 46

Multiple Choice

Microdash 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 8,000 hours?

• A)$9,500.
• B)$9,835.
• C)$10,135.
• D)$10,075. Total cost = $875 + (8,000 x $1.15)= $10,075