What is the estimate of the total cost when 300 machine-hours are used?

ACCOUNTING

Multiple Choice

The Hunter Company uses the high-low method to estimate the cost function. The information for 20x3 is provided below:

Machine-hours Labor Costs

Highest observation of cost driver 400 $10,000

Lowest observation of cost driver 240 $ 6,800


What is the estimate of the total cost when 300 machine-hours are used?

a. $2,000

b. $4,000

c. $6,000

d. $8,000

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