Given the following costs and activities for Dance Company electrical costs, use the high-low method to calculate Dance's variable electrical costs per machine hour.

	Costs	Machine Hours
Aug.	$11,700	15,000
Sept.	$13,200	17,500
Oct.	$11,400	14,500

a.$6.00

b.$1.20

c.$2.08

d.$0.60

2) Spice Inc.'s unit selling price is $48, the unit variable costs are $40, fixed costs are $111,000, and current sales are 9,800 units. How much will operating income change if sales increase by 5,400 units?

3

Under absorption costing, which of the following costs would not be included in finished goods inventory?

a.overtime wages paid to factory workers

b.hourly wages of assembly worker

c.straight-line depreciation on factory equipment

d.the salaries for salespeople