The Following Data Pertain to Activity and Utilities Costs for Two

question 32

Multiple Choice

The following data pertain to activity and utilities costs for two recent years:
Using the high-low method,what is the cost formula for utilities?

• A) $1.20 per unit.
• B) $1.50 per unit.
• C) $3,000 plus $3.00 per unit.
• D) $4,500 plus $0.75 per unit.FC = 12,000 - 10,000 * .75 = $4,500.

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