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:

Easy Temperament

A temperament characterized by regularity in biological rhythms, the tendency to adapt easily to new experiences, and a general cheerfulness.

Secure Attachment

A type of attachment characterized by trust and a bond where individuals feel they can rely on their attachment figures for support during times of distress.

Expressive Language

The use of words, sentences, gestures, and writing to convey meaning and communicate with others.

Social Smile

A developmental milestone in babies, referring to their first smiles in response to social interaction, typically appearing around 6 weeks of age.