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 answer-question

Management And Cost Accounting

ISBN: 9781292232669

7th Edition

Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan

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Posted Date: Apr 27, 2022 04:55 AM

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Quantum Company uses the high-low method to estimate the cost function. The information for 20X7 is provided

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Highest method Formula is as follows Y a bx x is number of units Y is tot... View the full answer

Management And Cost Accounting

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