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

question 32

Multiple Choice

Electrical costs at one of Gotch 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 to estimate the variable and fixed components of this cost, these estimates would be closest to:

• A) $0.15 per machine-hour; $35,115 per month
• B) $9.11 per machine-hour; $1,249 per month
• C) $9.43 per machine-hour; $35,406 per month
• D) $6.57 per machine-hour; $10,728 per month

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