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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 $ 7,300 260 February $ 9,125 730 $7,540 $7,485 $9,460 $9,030 March 410 April 330 May 980 June 705 How should the cost function be properly stated using the high-low method? Multiple Choice Y = $6,025 + $2.OOH. Y = $6,250 - $3.0OH. Y = $6,085 + $2.O0H. Y = $6,520 - $3.00H.

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 $ 7,300 260 February $ 9,125 730 $7,540 $7,485 $9,460 $9,030 March 410 April 330 May 980 June 705 How should the cost function be properly stated using the high-low method? Multiple Choice Y = $6,025 + $2.OOH. Y = $6,250 - $3.0OH. Y = $6,085 + $2.O0H. Y = $6,520 - $3.00H.

Managerial Accounting: The Cornerstone of Business Decision-Making
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
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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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. Cost (Y) Hours (H) $ 7,300 $9,125 $ 7,540 $7,485 $ 9,460 $9,030 Month 260 January February 730 March 410 April 330 May 980 June 705 How should the cost function be properly stated using the high-low method? Multiple Choice Y = $6,025 + $2.00H. Y = $6,250 + $3.00H. Y = $6,085 + $2.00H. Y = $6,520 + $3.00H.
Transcribed Image Text: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. Cost (Y) Hours (H) $ 7,300 $9,125 $ 7,540 $7,485 $ 9,460 $9,030 Month 260 January February 730 March 410 April 330 May 980 June 705 How should the cost function be properly stated using the high-low method? Multiple Choice Y = $6,025 + $2.00H. Y = $6,250 + $3.00H. Y = $6,085 + $2.00H. Y = $6,520 + $3.00H.
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