Wilson Corporation's activity for the first six of the current year is as follows: Using the high-low method, the variable cost per machine hour would be:
A) $0.67
B) $0.64
C) $0.40
D) $0.60

Question

Wilson Corporation's activity for the first six of the current year is as follows:  Using the high-low method, the variable cost per machine hour would be:
A) $0.67 
B) $0.64 
C) $0.40 
D) $0.60

Quizplus · Accepted Answer

11eacbfc_c8ad_7731_8ffe_ed2615e56dbb_TB7552_00 Variable cost = Change in cost ÷ Change in activity
Variable cost = $720 ÷ 1,200 machine-hours = $0.60 per machine-hour

Wilson Corporation's Activity for the First Six of the Current