The Following Data Pertains to Activity and Maintenance Cost for Two

question 22

Multiple Choice

The following data pertains to activity and maintenance cost for two recent periods: Maintenance cost is a mixed cost with both fixed and variable components.Using the high-low method,the cost formula for maintenance cost is:

• A)Y = $8,000 + $1.75 X
• B)Y = $3.75 X
• C)Y = $1,750 + $3.35 X
• D)Y = $3.35 X