Answer the Following Questions Using the Information Below

question 118

Multiple Choice

Answer the following questions using the information below:
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

-What is the estimated total cost at an operating level of 2,850 hours?

• A)$25,692
• B)$33,240
• C)$32,016
• D)$34,736

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Definitions:

Day-To-Day Job Performance

The daily execution of tasks and responsibilities by an individual at their place of work.

Capabilities

The qualities, skills, or expertise that enable an individual or organization to perform effectively in specific tasks or achieve certain goals.

Inseparability

Characteristic of services that highlights the simultaneous production and consumption, making it impossible to separate the service from the service provider.

Service Provider

A company or entity that offers services to consumers or other businesses.