(Appendix 5A) Electrical Costs at One of Rome Corporation's Factories

Multiple Choice

(Appendix 5A) Electrical costs at one of Rome Corporation's factories are listed below:
Management believes that electrical cost is a mixed cost that depends on machine-hours.
-Using the high-low method,the estimate of the fixed component of electrical cost per month is closest to:

A) $822
B) $743
C) $38
D) $944