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.