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    Question

    A manufacturing company reports the following

    semi-variable factory overheads at different activity levels:  Using the High–Low Method, the fixed component of the factory overhead is: 
    A ₹ 18,000 Correct Answer Incorrect Answer
    B ₹ 20,000 Correct Answer Incorrect Answer
    C ₹ 22,000 Correct Answer Incorrect Answer
    D ₹ 25,000 Correct Answer Incorrect Answer
    E ₹ 28,000 Correct Answer Incorrect Answer

    Solution

    As per High Low method, the highest and lowest level of activity is used :   
    Highest  =  6,000 units  and  ₹62,000  
    Lowest  =  1,000 units  and  ₹27,000  

     

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