Question
Glaslow Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past
Glaslow Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected as follows:
| Month | Lease Cost | Machine Hours |
| April | $14,000 | 800 |
| May | 10,000 | 600 |
| June | 12,000 | 770 |
| July | 15,000 | 1,000 |
Using the high-low method, calculate the variable rate per machine hour for the lease cost.
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International Accounting
Authors: Shirine Rathore
2nd Edition
8120336739, 9788120336735
