At the high level of activity in November, 7,000 machine hours were run and power costs were $2,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low method, what is the estimated fixed cost element of power costs? a. $12,000 b. $6,000 c. $3,600 d. $8,400

At the high level of activity in November, 7,000 machine hours were run and power costs were $2,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low method, what is the estimated fixed cost element of power costs? a. $12,000 b. $6,000 c. $3,600 d. $8,400

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 9MCQ: Assume that the moving activity has an expected cost of 80,000. Expected direct labor hours are...

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