Gargymal Company Would Like to Estimate the Variable and Fixed

question 63

Multiple Choice

Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last five months of operations.
-Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:

• A) $0.40
• B) $2.50
• C) $0.98
• D) $1.68

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Definitions:

Somatic

Relating to or affecting the body, distinct from the mind or psyche.

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary body functions, including heart rate, digestion, and respiratory rate.

Somatic

Relating to or affecting the body, especially as distinct from the mind or psyche.

Sympathetic

Pertaining to the sympathetic nervous system, which activates the body’s fight or flight response under stress.