(Appendix 5A) 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

(Appendix 5A) 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

11ea7761_1889_101f_81a5_a181dd59c20c_TB2580_00 Variable cost = Change in cost ÷ Change in activity
Variable cost = $720 ÷ 1,200 machine-hours = $0.60 per machine-hour

(Appendix 5A) Wilson Corporation's Activity for the First Six of the Current