Using the high-low method, how much is the electricity costs if the actual machine hours used is 2,800? þbedient Industries electricity costs and machine hours over a nine-month period follow: (Relevant range isfrom 2,000 to 5,000 machine hours)Machine hoursMonthAprilCost21009,750May340014,300June580021,640July490019,550August250011,150September300012,900October240010,8008,44022,000November1800December4800

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Using the high-low method, how much is the electricity costs if the actual machine hours used is 2,800?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Using the high-low method, how much is the electricity costs if the actual machine hours used is 2,800?

þbedient Industries electricity costs and machine hours over a nine-month period follow: (Relevant range is
from 2,000 to 5,000 machine hours)
Machine hours
Month
April
Cost
2100
9,750
May
3400
14,300
June
5800
21,640
July
4900
19,550
August
2500
11,150
September
3000
12,900
October
2400
10,800
8,440
22,000
November
1800
December
4800

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