The following six months of data were collected on Kelowna Company's electricity cost and the number of machine hours in a factory.
$\begin{array}{lrr}& \text { Electricity } & \text { Machine } \\text { Month } & \text { cost } & \text { hours }\
\text { June } & \$ 25,160 & 4,500 \
\text { July } & 26,170 & 4,810 \
\text { August } & 27,250 & 5,120 \
\text { September } & 26,680 & 5,010 \
\text { October } & 27,950 & 5,430 \
\text { November } & 27,500 & 5,190
\end{array}$
-Refer to the Figure.Which of the following is an independent-variable value used to calculate the cost line when using the high-low method?
A)$4,000
B)$5,430
C)$25,160
D)$27,950

Question

The following six months of data were collected on Kelowna Company's electricity cost and the number of machine hours in a factory.
 $\begin{array}{lrr}& \text { Electricity } & \text { Machine } \\text { Month } & \text { cost } & \text { hours }\
\text { June } & \$ 25,160 & 4,500 \
\text { July } & 26,170 & 4,810 \
\text { August } & 27,250 & 5,120 \
\text { September } & 26,680 & 5,010 \
\text { October } & 27,950 & 5,430 \
\text { November } & 27,500 & 5,190
\end{array}$
-Refer to the Figure.Which of the following is an independent-variable value used to calculate the cost line when using the high-low method?
A)$4,000
B)$5,430
C)$25,160
D)$27,950

Quizplus · Accepted Answer

The high-low method uses the highest and lowest levels of activity (in this case, machine hours) to estimate fixed and variable costs. The independent variable is the activity level, so the correct answer is the highest number of machine hours, which is 5,430.

The Following Six Months of Data Were Collected on Kelowna