Shock 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 $ 7,375 335 February $ 9,200 805 March $ 7,615 485 April $ 7,560 405 May $ 9,760 1,130 June $ 9,105 780 What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter3: Cost Behavior And Cost Forecasting
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Shock 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 $ 7,375 335
February $ 9,200 805
March $ 7,615 485
April $ 7,560 405
May $ 9,760 1,130
June $ 9,105 780

 

What is the estimated total cost at an operating level of 1,180 hours, using the high-low method?

Multiple Choice

  • $9,910.

  • $9,995.

  • $9,865.

  • $10,655.

  • None of these answers are correct.

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