The Longreach Toy Factory has determined machine hours to be the cost driver of the company's electricity costs. During the first six months of the year, the company incurred the following electricity costs:
Using the high-low method, estimate the variable cost per machine hour.
A) $8.38
B) $7.44
C) $5.50
D) None of the given answers

Question

The Longreach Toy Factory has determined machine hours to be the cost driver of the company's electricity costs. During the first six months of the year, the company incurred the following electricity costs: 
Using the high-low method, estimate the variable cost per machine hour.
A) $8.38 
B) $7.44 
C) $5.50 
D) None of the given answers

Quizplus · Accepted Answer

The Answer of The Longreach Toy Factory has determined machine hours to be the cost driver of the company's electricity costs. During the first six months of the year, the company incurred the following electricity costs: 
Using the high-low method, estimate the variable cost per machine hour.
A) $8.38 
B) $7.44 
C) $5.50 
D) None of the given answers

The Longreach Toy Factory Has Determined Machine Hours to Be