You Have Calculated,using the High-Low Method,a Variable Cost Per Machine

question 116

Multiple Choice

You have calculated,using the high-low method,a variable cost per machine hour of $0.80 for your production power costs.Power costs at 6,000 machine hours are $5,400;at 9,000 machine hours,they are $7,800.What are the total fixed costs that you would use to estimate production power costs for your company at any level within your relevant range?

• A)$600
• B)$6,400
• C)$2,400
• D)$4,800

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Definitions:

Company Policies

Guidelines and rules established by an organization to govern its actions and employee behavior.

Private Blog

An online journal or informational website with restricted access, where content is shared with only a select group of people or requires a password to view.

Negative Information

Data or feedback that reflects poorly on a subject, often influencing perceptions and decisions adversely.

Open-door Policy

An organizational practice of making managers accessible to employees for open discussions and feedback.