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Answer the Following Questions Using the Information Below:
the Tamworth

Question 140

Multiple Choice

Answer the following questions using the information below:
The Tamworth Company uses the high-low method to estimate the cost function.The information for 2018 is provided below:
 Machine-hours  Labour Costs  Highest observation of cost driver 800$20000 Lowest observation of cost driver 480$13600\begin{array} { l c c } & \text { Machine-hours } & \text { Labour Costs } \\\text { Highest observation of cost driver } & 800 & \$ 20000 \\\text { Lowest observation of cost driver } & 480 & \$ 13600\end{array}
-What is the estimate of the total cost when 600 machine-hours are used?


A) $4000
B) $8000
C) $12 000
D) $16 000

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