Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures:$\begin{array}{lrr}
& \text { Highest } & \text { Lowest } \
\text { Cost per month } & \$ 42,000 & \$ 34,000 \
\text { Machine hours } & 46,000 & 30,000
\end{array}$Using the high-low method, the estimated variable cost per machine hour is:
A) $0.70
B) $0.60
C) $0.50
D) $0.90
E) $0.10

Question

Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures:$\begin{array}{lrr} 
& \text { Highest } & \text { Lowest } \
\text { Cost per month } & \$ 42,000 & \$ 34,000 \
\text { Machine hours } & 46,000 & 30,000
\end{array}$Using the high-low method, the estimated variable cost per machine hour is:
A) $0.70
B) $0.60
C) $0.50
D) $0.90
E) $0.10

Quizplus · Accepted Answer

The Answer of Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures:$\begin{array}{lrr} 
& \text { Highest } & \text { Lowest } \
\text { Cost per month } & \$ 42,000 & \$ 34,000 \
\text { Machine hours } & 46,000 & 30,000
\end{array}$Using the high-low method, the estimated variable cost per machine hour is:
A) $0.70
B) $0.60
C) $0.50
D) $0.90
E) $0.10

Maintenance Expenses of a Company Are to Be Analyzed for Purposes