Shock 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 $ 7,375 335 February $ 9,200 805 March $ 7,615 485 April $ 7,560 405 May $ 9,760 1,130 June $ 9,105 780 What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?
Shock 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 $ 7,375 335 February $ 9,200 805 March $ 7,615 485 April $ 7,560 405 May $ 9,760 1,130 June $ 9,105 780 What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Shock 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 | $ 7,375 | 335 |
| February | $ 9,200 | 805 |
| March | $ 7,615 | 485 |
| April | $ 7,560 | 405 |
| May | $ 9,760 | 1,130 |
| June | $ 9,105 | 780 |
What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?
Multiple Choice
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$9,910.
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$9,995.
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$9,865.
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$10,655.
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None of these answers are correct.
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