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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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