In July, a month of high activity, 8,500 machine hours were run with power costs of $22,000. In March, a month of low activity, 3,000 machine hours were run with power costs of $10,000. Using the high-low method, what is the estimated fixed cost element of power costs? A. $22,000 B. $10,000 C. $6,182 D. $15,818

In July, a month of high activity, 8,500 machine hours were run with power costs of $22,000. In March, a month of low activity, 3,000 machine hours were run with power costs of $10,000. Using the high-low method, what is the estimated fixed cost element of power costs? A. $22,000 B. $10,000 C. $6,182 D. $15,818

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

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 9MCQ: Assume that the moving activity has an expected cost of 80,000. Expected direct labor hours are...

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At high level of activity in November, 8000 machine hours were run and power cost were $18,00. In April, a month of low activity, 2000 machine hours were run and power cost amounted to $9,000. Using the high-low method, the estimated fixed cost element of power cost is.
AT THE HIGH LEVEL OF ACTIVITY IN NOVEMBER, 10,300 MACHINE HOURS WERE RUN AND POWER COSTS WERE $20,600. IN APRIL, A MONTH OF LOW ACTIVITY, 3,800 MACHINE HOURS WERE RUN AND POWER COSTS AMOUNTED TO $8,000. USING THE HIGH-LOW METHOD, THE ESTIMATED FIXED COST ELEMENT OF POWER COSTS IS_____.