The managerial accountant at the Candle Shoppe uses the high-low method to estimate its cost function.The managerial accountant reported the following information in 2012:

Required:
Compute the slope coefficient per machine-hour.
A)$100
B)$200
C)$300
D)$400
E)$500

Question

The managerial accountant at the Candle Shoppe uses the high-low method to estimate its cost function.The managerial accountant reported the following information in 2012:

Required:
Compute the slope coefficient per machine-hour.
A)$100 
B)$200 
C)$300 
D)$400 
E)$500

Quizplus · Accepted Answer

B)[($460,000 - $240,000)/ (2,500 - 1,400)] =
[($220,000 / 1,100)] = $200

The Managerial Accountant at the Candle Shoppe Uses the High-Low