Nutt Industries electricity costs and machine hours over a six-month period follow: Using the high-low method, what is the estimated electricity cost per machine hour?
A)$.60
B)$1.67
C)$1.00
D)$.80

Question

Nutt Industries electricity costs and machine hours over a six-month period follow:  Using the high-low method, what is the estimated electricity cost per machine hour?
A)$.60 
B)$1.67 
C)$1.00 
D)$.80

Quizplus · Accepted Answer

11eb16ac_e017_6f30_984d_6bad33c060da_TB6154_00 Variable cost per labor hour = $600 / 1,000 hours = $.60/machine hour

Nutt Industries Electricity Costs and Machine Hours Over a Six-Month