Using the following data, apply the high-low method of cost analysis to the three cost data groups:   Volume Alpha Beta Gamma 2,000 $

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 3E
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Using the following data, apply the high-low method of cost analysis to the three cost data groups:

 

Volume Alpha Beta Gamma
2,000 $6,600 $2,400 $8,000
6,000 $9,800 $7,000 $8,000
13,000 $13,000 $12,000 $8,000
20,000 $21,000 $24,000 $8,000

 

 

What cost behavior patterns are apparent for each group?


 


 

Select one:
a. Alpha = Variable, Beta = Mixed, Gamma = Fixed
b. Alpha = Mixed, Beta = Fixed, Gamma = Variable
c. Alpha = Variable, Beta = Fixed, Gamma =  Mixed
d. Alpha = Fixed, Beta = Variable, Gamma =  Mixed
e. Alpha = Mixed, Beta = Variable, Gamma = Fixed
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