Quantum Company uses the high-low method to estimate the cost function. The information for 20X7 is provided
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Quantum Company uses the high-low method to estimate the cost function. The information for 20X7 is provided below:
Hours Labor Costs Highest observation of cost driver 650 $40,000
Second highest observation of cost driver 550 $35,000
Second lowest observation of cost driver 500 $34,000
Lowest observation of cost driver 450 $30,000
Calculate total fixed costs.
a. $7,500
b. $7,000
c. $10,000
d. $50
Related Book For
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
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