What is the estimated total cost at an operating level of 8,000 hours?

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 estimated total cost at an operating level of 8,000 hours?

a. $43,740

b. $36,670

c. $46,875

d. $37,125

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