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 a dependent-variable value used to calculate the cost line when using the high-low method?
A)$4,500
B)$5,430
C)$25,160
D)$27,900

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 a dependent-variable value used to calculate the cost line when using the high-low method?
A)$4,500
B)$5,430
C)$25,160
D)$27,900

Quizplus · Accepted Answer

The dependent variable in the context of the high-low method for analyzing costs is the cost itself, which varies based on the level of a certain activity (in this case, machine hours). The high-low method uses the highest and lowest levels of activity and their corresponding costs to determine the variable cost per unit of activity and the fixed cost. Among the options, $25,160 is a cost value, making it a dependent-variable value relevant to calculating the cost line.

The Following Six Months of Data Were Collected on Kelowna