Question Details

The Bovise Company has assembled the following data



Answer the following questions using the information below: 

The Bovise Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Bovise Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

	Month	Cost	Hours
	January	$40,000	3,600
	February	38,500	3,000
	March	36,280	3,300
	April	38,000	3,500
	May	69,850	5,850
	June	45,000	4,250

1) How is the cost function stated? 
A) y = $26,672 + $11.94X 
B) y = $1,360 + $11.37 
C) y = $31,350 + $12.83X 
D) y = $5,500 + $11X 


2) What is the estimated total cost at an operating level of 3,100 hours? 
A) $71,133 
B) $39,600 
C) $36,607 
D) $63,687 




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