The Following Data Pertains to Activity and Utility Costs for Two

question 59

Multiple Choice

The following data pertains to activity and utility costs for two recent years:
Using the high-low method, the cost formula for utilities is:

• A) $1.50 per unit
• B) $8,000 plus $0.50 per unit
• C) $1.25 per unit
• D) $6,000 plus $0.75 per unit