Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.   Month Cost(Y) Hours(H) January $ 7,300 260 February $ 9,125 730 March $ 7,540 410 April $ 7,485 330 May $ 9,460 980 June $ 9,030 705     What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?

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Chapter2: Basic Managerial Accounting Concepts
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Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.

 

Month Cost(Y) Hours(H)
January $ 7,300 260
February $ 9,125 730
March $ 7,540 410
April $ 7,485 330
May $ 9,460 980
June $ 9,030 705
 

 

What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?

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