FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
The Connors Company has assembled the following data pertaining to certain costs that cannot be
easily identified as either fixed or variable. Connors Company has heard about a method of measuring
cost functions called the high-low method and has decided to use it in this situation.
A company has heard about a method of measuring cost functions called the regression analysis and has
decided to use it in this situation.
Cost Hours
$23,000 5,000
$26,000 6,450
$34,600 7,650
$42,000 10,000
$38,000 9,350
What is the estimated total cost at an operating level of 9,000 hours?
A) $34,200
B) $38,200
C) $41,400
D) $37,800
Work question #7 using regression analysis
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