The following data pertain to activity and utility costs for two recent years: Year 2 Year 1 Activity Level in Units 10,000 6,000 Utilities Cost $12,000 $9,000 Using the high-low method, what is the cost formula for utilities?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter4: Job Order Costing
Section: Chapter Questions
Problem 3EA: Burnham Industries incurs these costs for the month: A. What Is the prime cost? B. What is the...
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The following data pertain to activity and utility costs for two
recent years:
Year 2
Year 1
Activity Level in Units 10,000 6,000
Utilities Cost
$12,000 $9,000
Using the high-low method, what is the cost formula for utilities?
Transcribed Image Text:The following data pertain to activity and utility costs for two recent years: Year 2 Year 1 Activity Level in Units 10,000 6,000 Utilities Cost $12,000 $9,000 Using the high-low method, what is the cost formula for utilities?
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