Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...
See similar textbooks
icon
Related questions
Question

Hello tutor answer this general accounting question do fast

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
Transcribed Image Text: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
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS