11) The total cost at an operating level of 2,850 hours would be
A) $19,210.
B) $11,763.
C) $14,697.
D) $11,212.
E) $9,210.
Use the information below to answer the following question(s).
The Monroe Company uses the highlow method to estimate the cost function. The information for 2002 is provided below.

Machine Hours 
Labour Costs 
Highest observation of cost driver 
240 
$4,000 
Lowest observation of cost driver 
110 
2,960 
12) What is Monroe Company’s slope coefficient per machine hour?
A) $26.91
B) $18.00
C) $16.67
D) $10.00
E) $8.00
13) What is the constant for the estimating cost equation?
A) $2,080
B) $2,960
C) $3,970
D) $4,000
E) $8,000
14) What is the estimate of Monroe’s cost function when 200 machine hours are used?
A) $1,840.00
B) $1,997.50
C) $2,280.00
D) $3,333.33
E) $3,680.00
Use the information below to answer the following question(s).
At the high point of the relevant range, labour hours at Bradco Restoration were 10,000 and wages were $22,500. At the low point of the relevant range, labour hours were 7,500 and wages were $17,500.
15) Using the highlow method determine the slope coefficient per labour hour at Bradco Restoration?
A) $5.25
B) $4.00
C) $2.00
D) $0.50
E) $0.25
16) Using the highlow method determine the constant at Bradco Restoration?
A) $17,500
B) $13,750
C) $2,500
D) $1,250
E) $750
17) What is the highlow estimate of the labour costs at Bradco Restoration when 8,000 hours are used?
A) $21,500
B) $18,500
C) $17,750
D) $17,250
E) $17,125
18) When using the highlow method, the denominator in the equation that determines the slope is the
A) outcome variable.
B) predictor variable.
C) difference between the high and low observations of the cost driver.
D) difference between the high and low observations of the outcome variables.
E) the intercept.
19) When using the highlow method, the two observations used are the high and low observations of the
A) cost driver.
B) outcome variables.
C) outliers.
D) mixed costs.
E) total pool cost.
Answer the following question(s) using the information below.
The Taranto Company uses the highlow method to estimate it’s cost function. The information for 2012 is provided below:

Machinehours 
Costs 
Highest observation of cost driver 
2,000 
$225,000 
Lowest observation of cost driver 
1,000 
$125,000 
20) What is the slope coefficient per machinehour?
A) $125.00
B) $12.50
C) $10.00
D) $100.00
E) $0.50