Sweetland Company, Which Uses the High-Low Method to Analyze Cost

question 15

Multiple Choice

Sweetland Company, which uses the high-low method to analyze cost behaviour, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 700 machine hours to a high of 1,200 machine hours, with the following data being available for the first six months of the year: $\begin{array} { | l | r | r | } \hline{ \text { Month } } & \text { Utilities } & \text { Machine Hours } \\\hline \text { January } & \$ 8,900 & 800 \\\text { February } & \$ 8,560 & 720 \\\text { March } & \$ 9,150 & \$ 10 \\\text { April } & \$ 9,560 & 920 \\\text { May } & \$ 9,825 & 950 \\\text { June } & \$ 9,350 & 900 \\\hline\end{array}$ Using the high-low method, the utilities cost associated with 980 machine hours would be:

• A)$9,900.
• B)$12,422.
• C)$12,812.
• D)$13,952.
• E)$15,044.

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Definitions:

Mediation

A conflict resolution method involving a neutral third party who assists disputing parties in reaching a voluntary, mutually satisfactory agreement.

Conciliation

A method of dispute resolution where an impartial third party helps the conflicting parties to reach a settlement amicably.

Emotionally Mature

Pertains to an individual who possesses the ability to understand, express, and manage their emotions effectively, while also being receptive and empathetic towards the emotions of others.

Disproportionate Distribution

An unequal allocation of resources, rights, or opportunities among different groups, often leading to disparities.