Estimated fixed cost element of power cost


At the high level of activity in November, 7,00 machines hours were run and power cost 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, the estimated fixed cost element of power cost is?

A)$8,400

B)$3,600

C)$6,000

D)$12,000

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Accounting Basics: Estimated fixed cost element of power cost
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