The Macon Company Uses the High-Low Method to Determine Its

question 91

Multiple Choice

The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year:
$$\begin{array} { l c c } & \text { Machine } & \text { Direct Labor } \\ & \text { Hours } & \text { Costs } \\ \text { Busiest month (June) }& 14,000 & \$ 2 0 0 , 0 0 0 \\\text { Slowest month (December) }& 6,000 & \$ 120,000\end{array}$$
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What are the direct labor costs per machine hour?

• A) $20.00.
• B) $16.00.
• C) $14.29.
• D) $10.00.

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Definitions:

Babbling

An infant’s repetition of certain syllables, such as ba-ba-ba, that begins when babies are between 6 and 9 months old.

Cooing

A phase in early language development characterized by the production of soft, vowel-like sounds by infants, often seen as a precursor to babbling.

Primary Means

The main or most direct method or tool used to achieve a goal or fulfill a function.

Communication

The exchange of information or ideas between individuals through speaking, writing, or another medium.