question archive Amman The following are machine hours and the maintenance and repair costs of Corporation: Machine hours maintenance and repair costs January 1500 hours $ 9700 February 1200 9600 March 2000 10000 Using the high-low method, the variable cost per machine hour is: O A
Amman The following are machine hours and the maintenance and repair costs of Corporation: Machine hours maintenance and repair costs January 1500 hours $ 9700 February 1200 9600 March 2000 10000 Using the high-low method, the variable cost per machine hour is: O A
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Amman The following are machine hours and the maintenance and repair costs of Corporation: Machine hours maintenance and repair costs January 1500 hours $ 9700 February 1200 9600 March 2000 10000 Using the high-low method, the variable cost per machine hour is: O A. $0.40 O B. $0.24 O C. $0.50 D. None of the above
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| Under High low method,Consider the Highest and Lowest activity and then apply the following equation | |||||
| Variable cost per machine hour=Change in maintance and repair costs/Change in machine hours | |||||
| Highest activity is in March-2000 machine hours | |||||
| Lowest activity is in Feb-1200 machine hours | |||||
| Variable cost per machine hour=(10000-9600)/(2000-1200)=$ 0.50 | |||||
| Answer is | |||||
| c. $0.50 |
