Calculate the variable rate using the High Low method of measuring cost function. January Cost of electricity Low capacity September Cost of electricity hours 55,000 machine $80,450 30,000 machine hours $64,200

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
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 9DQ: Describe the cost formula for a strictly variable cost such as electrical power cost of 1.15 per...
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Calculate the variable rate using the High
Low method of measuring cost function.
January
Cost of electricity
Low capacity
September
Cost of electricity
hours
55,000 machine
$80,450
30,000 machine
hours
$64,200
Transcribed Image Text:Calculate the variable rate using the High Low method of measuring cost function. January Cost of electricity Low capacity September Cost of electricity hours 55,000 machine $80,450 30,000 machine hours $64,200
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