(Appendix 5A) Electrical Costs at One of Rome Corporation's Factories

question 37

Multiple Choice

(Appendix 5A) Electrical costs at one of Rome Corporation's factories are listed below:
Management believes that electrical cost is a mixed cost that depends on machine-hours.
-Using the high-low method,the estimate of the fixed component of electrical cost per month is closest to:

• A) $822
• B) $743
• C) $38
• D) $944

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