Watson Company's supervisory costs are a mixed cost. At 800 labor hours, supervisory costs are $3,200. At 2,000 labor hours, supervisory costs are $5,600. Using the high-low method, what is the variable supervisory cost per unit and the total fixed supervisory cost? a. $2.00 and $1,600 b. $2.00 and $1,200 c. $1.75 and $1,800 d. $2.00 and $2,000

Watson Company's supervisory costs are a mixed cost. At 800 labor hours, supervisory costs are $3,200. At 2,000 labor hours, supervisory costs are $5,600. Using the high-low method, what is the variable supervisory cost per unit and the total fixed supervisory cost? a. $2.00 and $1,600 b. $2.00 and $1,200 c. $1.75 and $1,800 d. $2.00 and $2,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 13MCQ: The total cost for monthly supervisory cost in a factory is 4,500 regardless of how many hours the...

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