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John Moffat.
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Tasawer
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the following table shows total overheads of the company for the last five months.Apply high low method to evaluate equation for overheads;
UNITS $
1 19200 885,120
2 22080 960,000
3 21600 936,000
4 21120 956,160
5 20160 883,200
MY ANSWER IS 76,800+40X BUT IT SUGGEST THE ANSWER IS 385,920+26X.How??
John Moffat
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You take the highest and lowest level of the activity (units), which is months 2 and 1.
(You have taken months 2 and 5, which are the highest and lowest levels of cost).
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