Electricity Costs $9,221 $10,500 $6,774 $11,499 $14,125 $15,560 $12,375 $11,375 $6,572 $13,000 $15,510 $11,213 Month Machine Hours January February March 2,000 2,320 April May June July August September October 1,520 2,480 3,040 3,570 3,280 2,800 1,600 2,960 3,760 3,140 What is the estimated electricity cost for a month in which 1,900 machine hours are November December worked? (Round your answer to the nearest dollar). a. $8,403 b. $8,097 c. $8,059 d. $7,813 e. $7,941 f. $8,256 g. $9,046 h. None of the above
Electricity Costs $9,221 $10,500 $6,774 $11,499 $14,125 $15,560 $12,375 $11,375 $6,572 $13,000 $15,510 $11,213 Month Machine Hours January February March 2,000 2,320 April May June July August September October 1,520 2,480 3,040 3,570 3,280 2,800 1,600 2,960 3,760 3,140 What is the estimated electricity cost for a month in which 1,900 machine hours are November December worked? (Round your answer to the nearest dollar). a. $8,403 b. $8,097 c. $8,059 d. $7,813 e. $7,941 f. $8,256 g. $9,046 h. None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
Step 1
High low method is a method of cost estimation in which total fixed costs and variable cost per unit will be estimated and calculated by taking highest level activity and lowest level activity.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education