Sterling Glass 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 Hours January S 4820 500 February S 5325 800 March S 6340 750 April S 4785 600 May S 5985 1200 June S 5830 700 How should the cost function be properly stated? (Round variable cost per unit to 2 decimal places.) A Y $4760+ $2.50H. B Y = $3390 + $2.00H. Y= $1525+ $2.50H. Y=$3585+$2.00H.
Sterling Glass 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 Hours January S 4820 500 February S 5325 800 March S 6340 750 April S 4785 600 May S 5985 1200 June S 5830 700 How should the cost function be properly stated? (Round variable cost per unit to 2 decimal places.) A Y $4760+ $2.50H. B Y = $3390 + $2.00H. Y= $1525+ $2.50H. Y=$3585+$2.00H.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sterling Glass 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
Hours
January
February
March
April
May
June
SSSSSS
4820
500
5325
800
S
6340
750
S
4785
600
$
5985
1200
5830
700
How should the cost function be properly stated? (Round variable cost per unit to 2 decimal places.)
A
Y = $4760+ $2.50H.
B
Y = $3390+$2.00H.
Y = $1525+ $2.50H.
Y = $3585+$2.00H.
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