Question

Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to...

Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.

Month Cost(Y) Hours(H)
January $ 8,620 425
February $ 10,500 840
March $ 8,640 520
April $ 8,860 440
May $ 10,780 1,145
June $ 10,230 815

What is the estimated total cost at an operating level of 1,180 hours, using the high-low method? (Round variable cost per unit to 2 decimal places.)

rev: 10_11_2019_QC_CS-185084

Multiple Choice

  • $10,885.

  • $10,970.

  • $10,840.

  • $11,630.

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Answer: $10,885

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