The Photography Shoppe uses the high-low method and reported the following information to estimate the cost function.The managerial accountant provided the following information in 2012:

Required:
Compute the slope coefficient per machine-hour.
A)$10
B)$20
C)$30
D)$40
E)$50

Question

The Photography Shoppe uses the high-low method and reported the following information to estimate the cost function.The managerial accountant provided the following information in 2012:

Required:
Compute the slope coefficient per machine-hour.
A)$10 
B)$20 
C)$30 
D)$40 
E)$50

Quizplus · Accepted Answer

D)[($18,000 - $11,600)] = $6,400
[(380 - 220)] = 160
[($6,400 / 160)] = $40 slope coefficient per machine-hour

The Photography Shoppe Uses the High-Low Method and Reported the Following