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Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 19,000 machine hours of activity, total maintenance costs averaged $27
Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 19,000 machine hours of activity, total maintenance costs averaged $27 per hour. When activity jumped to 30,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $25. On the basis of this information, the variable cost per machine hour was
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