The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

Required:
Using the high-low method determine the forecasted cost for July if the number of hours used is expected to be 3,200.

Question

The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

Required:
Using the high-low method determine the forecasted cost for July if the number of hours used is expected to be 3,200.

Quizplus · Accepted Answer

The Answer of The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

Required:
Using the high-low method determine the forecasted cost for July if the number of hours used is expected to be 3,200.

The Gangwere Company Has Assembled the Following Data Pertaining to Certain