Exhibit 5-4
Wayside Company has machine hours of 5,000 and machine costs of $170,000 at the high data point.Machine hours are 2,000 and machine costs are $110,000 at the low data point.Wayside uses the high-low method to estimate costs.
-Refer to Exhibit 5-4.What is the estimated total fixed cost?
A)$60,000
B)$140,000
C)$55,000
D)$70,000
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The Answer of Exhibit 5-4
Wayside Company has machine hours of 5,000 and machine costs of $170,000 at the high data point.Machine hours are 2,000 and machine costs are $110,000 at the low data point.Wayside uses the high-low method to estimate costs.
-Refer to Exhibit 5-4.What is the estimated total fixed cost?
A)$60,000
B)$140,000
C)$55,000
D)$70,000
E)None of the answer choices is correct.

Exhibit 5-4 Wayside Company Has Machine Hours of 5,000 and Machine Costs