Glascro Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected as follows:

- Using the high-low method, calculate the variable rate for the lease cost.
A) $25
B) $15
C) $65
D) $59

Question

Glascro Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected as follows:

- Using the high-low method, calculate the variable rate for the lease cost.

- Using the high-low method, calculate the variable rate for the lease cost.
A) $25 
B) $15 
C) $65 
D) $59

Quizplus · Accepted Answer

Variable Rate = (High Point Cost - Low Point Cost) / (High Point Output - Low Point Output)
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Glascro Company Manufactures Skis