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    Question

    A manufacturing company reports the following

    semi-variable factory overheads at different activity levels:┬а Using the HighтАУLow Method, the fixed component of the factory overhead is:┬а
    A тВ╣ 18,000 Correct Answer Incorrect Answer
    B тВ╣ 20,000 Correct Answer Incorrect Answer
    C тВ╣ 22,000 Correct Answer Incorrect Answer
    D тВ╣ 25,000 Correct Answer Incorrect Answer
    E тВ╣ 28,000 Correct Answer Incorrect Answer

    Solution

    As per High Low method, the highest and lowest level of activity is used :┬а ┬а
    Highest┬а = ┬а6,000 units┬а and ┬атВ╣62,000 ┬а
    Lowest┬а = ┬а1,000 units┬а and ┬атВ╣27,000 ┬а

    ┬а

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