Wilson Company's activity for the first six months of the current year is as follows: Machine Hours Electrical Cost Month January 2,000 $1,600 February 3,000 $2,200 March 2,400 $1,840 April 1,900 $1,540 May 1,800 $1,480 June 2,100 $1,660 Using the high-low method, the fixed portion of the electrical cost each month would be? a. $760. b. $190. c. $400. d. $280.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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Wilson Company's activity for the first six months of the
current year is as follows:
Machine Hours Electrical Cost
Month
January 2,000
$1,600
February 3,000
$2,200
March 2,400
$1,840
April
1,900
$1,540
May
1,800
$1,480
June
2,100
$1,660
Using the high-low method, the fixed portion of the
electrical cost each month would be?
a. $760.
b. $190.
c. $400.
d. $280.
Transcribed Image Text:Wilson Company's activity for the first six months of the current year is as follows: Machine Hours Electrical Cost Month January 2,000 $1,600 February 3,000 $2,200 March 2,400 $1,840 April 1,900 $1,540 May 1,800 $1,480 June 2,100 $1,660 Using the high-low method, the fixed portion of the electrical cost each month would be? a. $760. b. $190. c. $400. d. $280.
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