The 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: Highest and Lowest: Cost per month $42,000and $34,000;Machine hours 46,000 and 30,000.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

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The Answer of The 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: Highest and Lowest: Cost per month $42,000and $34,000;Machine hours 46,000 and 30,000.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

The Maintenance Expenses of a Company Are to Be Analyzed