Solution-Estimated total utility costs at an activity level

Estimated total utility costs at an activity level

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Reference no: EM131811482

Question - Chamberlain Music Studios seeks your help in analyzing the cost behavior pattern of its utility costs. At an activity level of 7,000 direct labor hours, total utility costs were $16,800; at 5,000 hours, total utility costs were only $14,300. Using the high-low method, the estimated total utility costs at an activity level of 6,500 direct labor hours would be

a. $15,600.

b. $16,175.

c. $16,300.

d. $18,590.

e. none of the above.

Reference no: EM131811482

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Estimated total utility costs at an activity level

Reference no: EM131811482

Reference no: EM131811482

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