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What is the estimate of Kaiser cost function

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Question - Kaiser Ltd. uses the high-low method to estimate the cost function. The information for 2018 is provided below.

Month Machine hours Labour costs ($)

January 130 5,124

February 250 7,611

March 180 6,208

April 165 6,300

May 240 9,800

June 80 3,200

July 155 6326

August 190 7,200

September 230 8,138

October 250 8,600

November 260 10,004

December 190 7,400

Required - What is the estimate of Kaiser's cost function when 120 machine hours are used (to the nearest dollar)?

A. $4,347

B. $4,712

C. $4,744

D. $4,797

Reference no: EM132751888

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