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    Mixed Costs High Low Method

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    Whitehouse Company manufactures major appliances. Because of growing interest in its products, it has just had its most successful year. In preparing the budget for next year, its controller compiled these data*.

    Using the high-low method, determine the variable electricity cost per machine hour per machine hour?
    Determine the monthly fixed electricity cost?
    Estimate the total variable electricity costs and fixed electricity costs if 4,800 machine hours are projected to be used next month?

    *data found in solution file

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    https://brainmass.com/business/accounting/mixed-costs-high-low-method-463668

    Solution Preview

    High 6,000 hours $60,000
    Low 3,000 hours 39,000
    Difference ...

    Solution Summary

    Cost allocation using the high low method

    $2.19

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