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    High low method

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    The Ponder Manufacturing Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data:

    Cost of Electricity Direct Labor-
    Month (Y) Hours (X)
    January $13,000 1,500
    April $15,000 1,700
    July $17,000 2,000
    October $14,500 1,600

    What would be the best equation using the high-low method?

    *Note: Please see attachment on this practice problem.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:34 pm ad1c9bdddf
    https://brainmass.com/business/accounting/high-low-method-problem-238287

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    Hi,

    Please see the response to your posting as below:
    Highest direct labor hours = 2000 in month of July and corresponding monthly cost of electricity ...

    Solution Summary

    Solution shows the best equation using the high-low method

    $2.19

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