Question
Bell Company has provided the following data for maintenance costs: April May Machine hours incurred 12,000 16,000 Maintenance cost incurred $24,000 $26,000 Using the high-low
Bell Company has provided the following data for maintenance costs:
April May
Machine hours incurred 12,000 16,000
Maintenance cost incurred $24,000 $26,000
Using the high-low method, the cost formula for maintenance cost is?
A - $1.625 per machine hour.
B - $2.00 per machine hour.
C - $18,000 plus $0.50 per machine hour.
D - $24,000 plus $0.50 per machine hour.
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Management Information Systems Managing the digital Firm
Authors: Kenneth C. Laudon, Carol Guercio Traver
14th edition
132142856, 132142854, 978-0133898163
