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Using the high-low method, the utilities cost associated with 980 machine hours would be:

A. $9,510.
B. $9,660.
C. $9,700.
D. $9,790.
E. an amount other than those listed above.

User Harikrish
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1 Answer

4 votes

Final answer:

The data given is insufficient to use the high-low method for calculating the utilities cost for 980 machine hours; thus, the correct answer is E. an amount other than those listed above.

Step-by-step explanation:

The question requires the use of the high-low method to determine the utilities cost for a given number of machine hours. Unfortunately, the data provided is insufficient to perform the high-low method calculation as there is no specific information about the highest and lowest levels of activity or their respective costs. To calculate the cost using the high-low method, you need the total costs at the highest and lowest levels of activity to determine the variable cost per unit of activity. Then, the fixed cost is calculated and the cost for the desired activity level can be determined. Given the incomplete information, no calculation can be performed, and the answer is E. an amount other than those listed above.

User Mithrandi
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8.3k points