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Electrical costs at one of Rome Corporation's factories are listed below:Machine-HoursElectrical ...

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Electrical costs at one of Rome Corporation's factories are listed below:Machine-HoursElectrical ...

Electrical costs at one of Rome Corporation's factories are listed below:

	Machine-Hours	Electrical Cost
March	458	$ 1,007
April	423	$ 934
May	440	$ 979
June	409	$ 902
July	426	$ 952
August	372	$ 822
September	414	$ 926
October	431	$ 949
November	468	$ 1,025

Management believes that electrical cost is a mixed cost that depends on machine-hours.

Using the high-low method, the estimate of the fixed component of electrical cost per month is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $822

▸ $743

▸ $38

▸ $944

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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