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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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