Answer the Following Questions Using the Information Below:
the Yeppoon

question 134

Multiple Choice

Answer the following questions using the information below:
The Yeppoon Company uses the high-low method to estimate its cost function.The information for 2018 is provided below:
$$\begin{array} { l c c } & \text { Machine-hours } & \text { Costs } \\\text { Highest observation of cost driver } & 2000 & \$ 225000 \\\text { Lowest observation of cost driver } & 1000 & \$ 125000\end{array}$$
-What is the estimate of the total cost when 1100 machine-hours are used?

• A)$150 000
• B)$135 000
• C)$200 000
• D)$125 000

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Definitions:

Daily Wages

The amount of money that a worker earns for one day of labor.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset.

Office Supplies

Items and equipment regularly used in offices by businesses and other organizations, including paper, pens, and stationery.

Payroll

The total amount of wages and salaries paid by a company to its employees, as well as the process of managing these payments.