The Phone Bill for a Corporation Consists of Both Fixed

question 137

Multiple Choice

The phone bill for a corporation consists of both fixed and variable costs.Refer to the four-month data below and apply the high-low method to answer the question. $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { Tanuary } & 480 & \$ 4500 \\\hline \text { February } & 240 & \$ 2690 \\\hline \text { March } & 160 & \$ 2630 \\\hline \text { April } & 300 & \$ 2845 \\\hline\end{array}$$ If the company uses 360 minutes in May,how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

• A)$1697
• B)$2102
• C)$3799
• D)$7305

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Definitions:

Operations Data

Information related to the day-to-day activities of a business, such as production volumes, input costs, and inventory levels, used for operational planning and analysis.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated overhead costs and estimated activity levels.

Underapplied Overhead

Occurs when the allocated overhead costs are less than the actual overhead costs incurred, leading to a shortfall in overhead cost allocation.

Direct Labor-Hours

The total hours of work directly spent on the production of goods or the delivery of services.