

Ans 4
c. $14,057
Explanation:
Using high low method we have
Highest cost = $36,000 for 17,600 hours in the month of February.
Lowest Cost = $26400 for 9,900 hours in the month of January.
$26,400 = 9,900 V + F _(1)
$36,000 = 17,600 V + F _(2)
Eq:(2)-(1)
$9,600 = 7,700 V
$1.2467= V
9,900V = $12,343
$26,400 - $12,343 = $14,057
Fixed Cost = $14,057
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