166 167 168 169 170 171 172 173 24. Which one of the following would most likely be considered a mixed cost? a) Cost of using a copy machine b) Direct labor c) Supervisory salaries d) Direct materials Scorpio Company's activity for the first five months of 2006 are as follows: Machine Electrical Cost Hours January 2,100 $2,400 Februar 2,700 $3,300 March 2,600 $2,900 April 2,900 $3,200 May 2,400 $2,600 174 175 176 177 178 179 180 181 25. Using the high-low method, how much is the cost per machine hour? a) $1.00 b) $1.50 $1.13 d) $0.89 182 183 184 185 186 187 188 189 190 191 192 26. Which statement describes a fixed cost? a) It varies in total at every level of activity. b) The amount per unit varies depending on the activity level. c) Its total varies proportionally to the level of activity. It remains the same per unit regardless of activity level