Figure 3-13.The following 6 months of data were collected on electricity cost and the number of machine hours in a factory.
-Refer to Figure 3-13. An independent variable value used in calculating the cost line using the high-low method is:
A) $27,950
B) 5,430
C) $25,160
D) 4,000

Question

Figure 3-13.The following 6 months of data were collected on electricity cost and the number of machine hours in a factory. 
-Refer to Figure 3-13. An independent variable value used in calculating the cost line using the high-low method is:
A) $27,950 
B) 5,430 
C) $25,160 
D) 4,000

Quizplus · Accepted Answer

The high-low method uses the highest and lowest activity levels to calculate the variable cost per unit. The independent variable in this context is the activity level, which is typically a measure like units produced or hours worked. Here, 5,430 is likely the highest or lowest activity level used in the calculation.