The following four months of data were collected on utility cost and the number of labor hours in a factory.

- Using the high-low method, compute the fixed cost of electricity.
A) $13,740
B) $10,860
C) $6,400
D) None of these are correct.

Question

The following four months of data were collected on utility cost and the number of labor hours in a factory.

-  Using the high-low method, compute the fixed cost of electricity.
A) $13,740 
B) $10,860 
C) $6,400 
D) None of these are correct.

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
$24,600 - ($2.00 × 5,430) = $13,740
OR
$20,140 - ($2.00 × 3,200) = $13,740

The Following Four Months of Data Were Collected on Utility