Portman Company's Activity for the First Three Months of 2016

question 77

Multiple Choice

Portman Company's activity for the first three months of 2016 are as follows: $\begin{array}{lll}&\text { Machine Hours}&\text { Electrical Cost }\\\hline\text { January } & 2,100 & \$ 4,800 \\\text { February } & 2,600 & \$ 5,800 \\\text { March } & 2,900 & \$ 6,400\end{array}$ Using the high-low method, how much is the cost per machine hour?

• A)$2.00
• B)$3.00
• C)$2.26
• D)$1.78

Develop analytical skills in evaluating operational performance through variance analysis.

Gain insights into the impact of price, quantity, and efficiency variances on a company's financial performance.

Enhance problem-solving skills through the interpretation of variance analysis results.

Understand how to calculate and interpret labor efficiency variances.

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Definitions:

Mental Retardation

An outdated term for intellectual disability, which is characterized by below-average intellectual functioning and a lack of skills necessary for daily living.

IQ Below 70

is often used as a diagnostic criterion for intellectual disability, indicating significant limitations in intellectual functioning and adaptive behavior.

Adaptive Functioning

Refers to an individual's ability to effectively manage everyday tasks and challenges, including social and practical skills.

Mildly Retarded

An outdated and insensitive term formerly used to describe individuals with mild intellectual disability.