Electrical Costs at One of Reifel Corporation's Factories Are Listed

question 37

Multiple Choice

Electrical costs at one of Reifel Corporation's factories are listed below: Management believes that electrical cost is a mixed cost that depends on machine-hours.
-Using the high-low method,the estimate of the variable component of electrical cost per machine-hour is closest to:

• A)$0.12
• B)$20.38
• C)$7.98
• D)$8.22

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Definitions:

Income Statement

The income statement is a financial statement that shows a company's revenues and expenses over a specific period, demonstrating how the revenues are transformed into net income or loss.

Disclosed

Information that has been made known or revealed, typically referring to facts that were previously private or confidential.

Expenses

The costs incurred in the process of generating revenue, including costs like rent, utilities, payroll, and materials.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity, including cash, inventory, and property.