Answered
The following data pertains to activity and utility costs for two recent years: Year 2 Year 1 Activity level in units 12,0008,000 Utilities cost $15,000$12,000\begin{array} { | l | l | l | } \hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Activity level in units } & 12,000 & 8,000 \\\hline \text { Utilities cost } & \$ 15,000 & \$ 12,000 \\\hline\end{array} Activity level in units Utilities cost Year 2 12,000$15,000 Year 1 8,000$12,000 Using the high-low method, the cost formula for utilities is?
A) $1.25 per unit.
B) $6,000 plus $0.75 per unit.
C) $8,000 plus $0.50 per unit.
D) $1.50 per unit.
On Jun 23, 2024