Inspection costs at one of Ratulowski Corporation's factories are listed below: Management believes that inspection cost is a mixed cost that depends on units produced. Using the high-low method, the estimate of the variable component of inspection cost per unit produced is closest to: Select one: a. $8.14 b. $7.05 c. $0.12 d. $12.89

Respuesta :

Answer:

a. $8.14

Explanation:

The computation of the   estimate of the variable component of inspection cost per unit produced using the high low method is shown below:

Variable cost per hour = (High inspection cost - low inspection cost) ÷ (High units produced - low units produced)

= ($10,795 - $10,176) ÷ (853  units - 777 units)

= $619 ÷ 76 units

= $8.14

We simply applied the above formula

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