ACCOUNTING
Multiple Choice
The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Barnett Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Cost Hours
$24,900 5,250
24,000 5,500
36,400 7,500
44,160 9,750
45,000 9,500
What is the cost function?
a. y = $43,191 + $0.19X
b. y = $4,875 + $5.25X
c. y = $41,900 + $0.23X
d. y = $2,430 + $4.28X
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