Perficient Ltd has accumulated the following data for the most recent 6-month period.

Month	Machine hours	Maintenance services cost
January	35,000	$55,000
February	18,000	30,000
March	21,000	40,000
May	7,500	15,000
June	13,400	25,000
July	9,000	19,000

Management believes that the maintenance services cost is a mixed cost that depends on machine hours. Using the high-low method to estimate the variable component of this cost, the estimate would be closest to:

A.

$0.69 per machine hour

B.

$1.54 per machine hour

C.

$1.45 per machine hour

D.

$0.96 per machine hour

Serin Ltd is a manufacturer with the following information available at year-end:

Salary of the marketing manager	100,000
Direct labour	220,000
Indirect labour	40,000
Sales commission	250,000
Direct material used	$ 600,000
Depreciation of factory building	7,000
Factory Insurance	81,000

The total of the product costs for the year is:

A.

$860,000

B.

$348,000

C.

$598,000

D.

$948,000