8) Paine Company wishes to determine the fixed portion of its electrical costs (a mixed cost). Management believes that the variable portion of the electrical costs is driven by machine-hours. Information for the previous three months follows: January February March Machine-hours Electrical cost 33,000 31,000 34,000 $600 $585 $610 Using the high-low method, the fixed portion of the company's electrical costs would be estimated to be closest to:
8) Paine Company wishes to determine the fixed portion of its electrical costs (a mixed cost). Management believes that the variable portion of the electrical costs is driven by machine-hours. Information for the previous three months follows: January February March Machine-hours Electrical cost 33,000 31,000 34,000 $600 $585 $610 Using the high-low method, the fixed portion of the company's electrical costs would be estimated to be closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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