(Appendix 5A) Hiss Corporation's activity for the last six months is as follows:

-Using the high-low method of analysis,the estimated variable lubrication cost per machine hour is closest to:
A) $1.50
B) $1.25
C) $0.67
D) $1.40

Question

(Appendix 5A) Hiss Corporation's activity for the last six months is as follows:
 
-Using the high-low method of analysis,the estimated variable lubrication cost per machine hour is closest to:
A) $1.50 
B) $1.25 
C) $0.67 
D) $1.40

Quizplus · Accepted Answer

11ea7761_188f_02ac_81a5_7b1bdb690af4_TB2580_00 Variable cost = Change in cost ÷ Change in activity = $240 ÷ 160 machine hours = $1.50 per machine hour

(Appendix 5A) Hiss Corporation's Activity for the Last Six Months