Hiss Corporation's activity for the last six months is as follows: Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:

Question

Hiss Corporation's activity for the last six months is as follows:  Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:

Quizplus · Accepted Answer

11eacbfc_c8b1_e427_8ffe_55a8d6fe43b8_TB7552_00 Variable cost = Change in cost ÷ Change in activity
Variable cost = $780 ÷ 1,200 machine-hours = $0.65 per machine-hour

Hiss Corporation's Activity for the Last Six Months Is as Follows