Question
Emerald Ltd has accumulated the following data for the most recent 6-month period. Month Direct labour hours Maintenance services July 27,000 $46,000 August 20,000 29,000
Emerald Ltd has accumulated the following data for the most recent 6-month period.
Month
Direct labour hours
Maintenance services
July
27,000
$46,000
August
20,000
29,000
September
21,000
40,000
October
8,000
17,000
November
12,000
20,000
December
9,000
20,000
Management believes that maintenance cost is a mixed cost that depends on direct labour hours. Using the high-low method to estimate the variable component of this cost, the estimate would be closest to:
Select one:
A.
$1.56 per direct labour hour
B.
$1.53 per direct labour hour
C.
$0.69 per direct labour hour
D.
$0.66 per direct labour hour
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