Cost element of power costs


At the high level of activity in November, 7,000 machine hours were run and power costs were $12,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low method, the estimated fixed cost element of power costs is:

a. $12,000.

b. $6,000.

c. $3,600.

d. $8,400.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Cost element of power costs
Reference No:- TGS062557

Expected delivery within 24 Hours