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Based on the maintenance expenses of a company, which are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed

Based on the maintenance expenses of a company, which are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures:

Highest Lowest
Cost per month $42,000 $34,000
Machine hours 46,000 30,000

Using the high-low method, the estimated variable cost per machine hour is:

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