Fromme's Frocks Has the Following Machine Hours and Production Costs

Fromme's Frocks has the following machine hours and production costs for the last six months of last year:
$$\begin{array} { | l | r | r | } \hline \text { Month } & \text { Machine Hours } & \text { Production Cost } \\\hline \text { July } & 15,000 & \$ 12,075 \\\hline \text { August } & 13,500 & 10,800 \\\hline \text { September } & 11,500 & 9,580 \\\hline \text { October } & 15,500 & 12,080 \\\hline \text { November } & 14,800 & 11,692 \\\hline \text { December } & 12,100 & 9,922 \\\hline\end{array}$$
If Fromme expects to incur 14,000 machine hours in January,what will be the estimated total production cost using the high-low method?

A) $8,750.00.
B) $11,142.50.
C) $22,400.00.
D) $10,889.10.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free