Day Mail Order Co. applied the high-low method of cost estimation to customer order data for the first four months of 2005. What is the estimated variable order filling cost component per order? Month Orders Cost January 1,200 $3,120 February 1,300 3,185 March 1,800 4,320 April 1,700 3,895 a. $2.00 b. $2.42 c. $2.48 d. $2.50 6,000 $14,520

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
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Problem 1PA: When prices are rising (inflation), which costing method would produce the highest value for gross...
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Day Mail Order Co. applied the high-low method of
cost estimation to customer order data for the first
four months of 2005. What is the estimated
variable order filling cost component per order?
Month
Orders Cost
January 1,200 $3,120
February 1,300 3,185
March 1,800 4,320
April 1,700 3,895
a. $2.00
b. $2.42
c. $2.48
d. $2.50
6,000 $14,520
Transcribed Image Text:Day Mail Order Co. applied the high-low method of cost estimation to customer order data for the first four months of 2005. What is the estimated variable order filling cost component per order? Month Orders Cost January 1,200 $3,120 February 1,300 3,185 March 1,800 4,320 April 1,700 3,895 a. $2.00 b. $2.42 c. $2.48 d. $2.50 6,000 $14,520
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