Question

Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to...

Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month.

Cost

Machine Hours
January $75,830 10,100
February 126,860 18,200
March 88,800 12,100
April 108,830 15,300

a.$12,200

b.$20,700

c.$9,800

d.$39,000

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Answer #1

Answer: Option ( A ) $12,200

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