Author Question: The Connors Company has assembled the following data pertaining to certain costs that cannot be ... (Read 110 times)

nenivikky · **on:** Mar 6, 2021

Question 1

Taunton Company uses the high-low method to estimate its cost function. The information for 2017 is provided below:

Machine-hours

Costs

Highest observation of cost driver 4,000 $332,000
Lowest observation of cost driver 3,000 $312,000

What is the estimated total cost when 1,900 machine-hours are used?
◦ $509,600
◦ $290,000
◦ $489,700
◦ $157,700

Question 2

The Connors Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Connors Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

Cost Hours
$24,000 5,000
$26,100 6,300
$34,700 7,900
$48,000 11,000
$38,300 9,250

What is the cost function?
◦ y = $48,000 + $4.80X
◦ y = $24,000 + $4.36X
◦ y = $34,700 + $4.80X
◦ y = $4,000 + $4.00X

TheNamesImani · **Reply #1 on:** Mar 6, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 29% of students answer this correctly