Answer the Following Questions Using the Information Below:
Uninder Company

question 37

Multiple Choice

Answer the following questions using the information below:
Uninder Company uses the high-low method to estimate the cost function. The information for 2015 is provided below:
$\begin{array}{lll}&\text { Machine-hours } & \text { Labor Costs }\\\text { Highest observation of cost driver } & 550 & \$ 22,000 \\\text { Lowest observation of cost driver } & 250 & \$ 13,000\end{array}$
-What is the estimated cost function for the above data?

• A) y = 13,000 + 43.75X
• B) y = 5,500 + 30X
• C) y = 22,000 + 40X
• D) y = 16,500 + 52X

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