The Macon Company uses the high-low method to determine its cost
equation. The following information was gathered for the past
year:
If Macon expects to use 10,000 machine hours next month, what are the estimated direct labor costs?
| Machine Hours | Direct Labor Costs | ||||||||
| Busiest month (June) | 14,000 | $ | 200,000 | ||||||
| Slowest month (December) | 6,000 | $ | 120,000 | ||||||
If Macon expects to use 10,000 machine hours next month, what are the estimated direct labor costs?
-
$160,000.
-
$175,000.
-
$180,000.
-
$150,000.
