Microdash 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.
What is the estimated total cost at an operating level of 8,000 hours?
A)$9,500.
B)$9,835.
C)$10,135.
D)$10,075. Total cost = $875 + (8,000 x $1.15)= $10,075

Question

Microdash 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. 
What is the estimated total cost at an operating level of 8,000 hours?
A)$9,500. 
B)$9,835. 
C)$10,135. 
D)$10,075. Total cost = $875 + (8,000 x $1.15)= $10,075

Quizplus · Accepted Answer

The estimated total cost at an operating level of 8,000 hours is $10,075, calculated using the high-low method. This is the only answer choice provided, therefore D is the correct choice.

Microdash Company Uses the High-Low Method to Analyze Mixed Costs