Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth Felinas, asked you to assist him in estimating his maintenance costs. Together, Mr. Felinas and you determined that the single best cost driver for maintenance costs was machine hours. Below are data from the previous fiscal year for maintenance expense and machine hours:Using the high-low method, unit variable cost is calculated to be:
A) $1.31.
B) $1.59.
C) $1.36.
D) $1.14.
E) $1.20.

Question

Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth Felinas, asked you to assist him in estimating his maintenance costs. Together, Mr. Felinas and you determined that the single best cost driver for maintenance costs was machine hours. Below are data from the previous fiscal year for maintenance expense and machine hours:Using the high-low method, unit variable cost is calculated to be:
A) $1.31. 
B) $1.59. 
C) $1.36. 
D) $1.14. 
E) $1.20.

Quizplus · Accepted Answer

The Answer is E