Estimated fixed cost element of power costs

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Reference no: EM13127407

At the high level of activity in November, 7,000 machine hours were run and power costs were $12,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low method, the estimated fixed cost element of power costs is:

A) $12,000.

B) $6,000.

C) $3,600.

D) $8,400.

Reference no: EM13127407

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