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The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year:


The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year:

Picture

If Shapely expects to use 10,000 machine hours next month, what are the estimated direct labor costs?
$160,000
$180,000
$175,000
$150,000The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year:

Picture

If Shapely expects to use 10,000 machine hours next month, what are the estimated direct labor costs?
$160,000
$180,000
$175,000
$150,000



The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for 2008:

Machine Hours Direct Labor Costs
Busiest month (June) 14,000 $200,000
Slowest month (December) 6,000 $120,000



If Shapely expects to use 10,000 machine hours next month, what are the estimated direct labor costs? (Points : 1)
$160,000
$180,000
$175,000
$150,000





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