Design Fashion has an average overhead cost per hour of $21.00 at 3,500 machine hours, and at 3,000 hours it is $22.50. The company managers wish to estimate the overhead cost function. What is the variable overhead cost per machine hour?
A) $1.50
B) $12.00
C) $6.00
D) $1.75

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The Answer of Design Fashion has an average overhead cost per hour of $21.00 at 3,500 machine hours, and at 3,000 hours it is $22.50. The company managers wish to estimate the overhead cost function. What is the variable overhead cost per machine hour?
A) $1.50
B) $12.00
C) $6.00
D) $1.75

Design Fashion Has an Average Overhead Cost Per Hour of $21.00