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:

Slavery

A framework where people are possessed by others, lacking in personal liberty, and forced to carry out work or services.

Fur Trappers

Individuals or explorers, particularly in the 18th and 19th centuries, who trapped and traded animal fur, significantly contributing to the European settlement and exploration of North America.

Trans-Appalachian West

The region west of the Appalachian Mountains, historically significant for its role in early American settlement, exploration, and conflict with Indigenous peoples.

Black Hawk War

A brief conflict in 1832 between the United States and Native American forces led by Black Hawk, a Sauk leader.