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57. Northlake, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged
57. Northlake, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000
machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to
24,000 machine hours, which was still within the relevant range, the average total cost per machine hour
was $9.75. On the basis of this information, the company's fixed maintenance costs were:
A. $24,000.
B. $90,000.
C. $210,00.
D. $234,000.
E. an amount other than those listed above.
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