The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance:

-Using the high-low method, what is the variable maintenance cost per machine hour at Menno Corp?
A) $0.35
B) $0.54
C) $1.50
D) $0.67

Question

The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance:
 
-Using the high-low method, what is the variable maintenance cost per machine hour at Menno Corp?
A) $0.35 
B) $0.54 
C) $1.50 
D) $0.67

Quizplus · Accepted Answer

The variable maintenance cost per machine hour is $0.35. This is calculated by dividing the variable maintenance cost of $350 by the machine hours of 1,000.

The Controller of Menno Corp Presents You with the Following