Hello tutor give me answer The Fairmont Machine Shop wants to develop a costestimating equation for its monthly cost of electricity. It hasthe following data:Month Cost of Electricity (Y) Direct Labor-Hours (X)January $14,000April$15,000July$17,0001,5001,7002,0001,600October $14,500What would be the best equation using the high-lowmethod?a. Y = $4,000+ $7Xb. Y$0$9Xc. Y$1,000+ $8Xd. Y = $5,000+ $6X

Step 1: Define High-Low MethodThe total cost incurred by a firm can be decomposed into two…

Answered: The Fairmont Machine Shop wants to…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8EA: Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000...

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