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Description: Given the following costs and activities for Downing Company electrical costs, use the high-low method to calculate Downing’s variable electrical costs per machine hour. CostsMachine HoursAprilMayJuneP11,700P13,200P11,40015,00017,50014,500

Business

Accounting

Given the following costs and activities for Downing Company electrical costs, use the high-low method to calculate Downing’s variable electrical costs per machine hour.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Given the following costs and activities for Downing Company electrical costs, use the high-low method to calculate Downing’s variable electrical costs per machine hour.

Costs
Machine Hours
April
May
June
P11,700
P13,200
P11,400
15,000
17,500
14,500

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