At the High Level of Activity in November, 7,000 Machine

Multiple Choice

At the high level of activity in November, 7,000 machine hours were run and power costs were $12,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low method, the estimated fixed cost element of power costs is

A) $12,000.
B) $6,000.
C) $3,600.
D) $8,400.