Question

Werner Brothers, Inc., used the high-low method to derive its cost formula for electrical power cost. According to the cost formula, the variable cost per unit of activity is $2 per machine-hour. Total electrical power cost at the high level of activity was $9,400 and at the low level of activity was $9,000. If the high level of activity was 2,200 machine hours, then the low level of activity was:
A. 1,800 machine hours

B. 1,900 machine hours

C. 2,000 machine hours

D.1,700 machine hours

Answer 1

Answer:

C) 2,000 machine hours

Explanation: