(TCO 9) The Wiscow Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at 2,300 machine hours. The records also indicated that overhead of $9,730 was incurred at 2,600 machine hours. What is the fixed cost using the high-low method to estimate the cost equation?
A) | $3,264 |
B) | $5,434 |
C) | $2,170 |
D) | $7,604 |
Expert Answer