Bell Company Has Provided the Following Data for Maintenance Costs

question 19

Multiple Choice

Bell Company has provided the following data for maintenance costs: $$\begin{array} { | l | l | l | } \hline & \text { April } & \text { May } \\\hline \text { Machine hours incurred } & 12,000 & 16,000 \\\hline \text { Maintenance cost incurred } & \$ 24,000 & \$ 26,000 \\\hline\end{array}$$ Using the high-low method, the cost formula for maintenance cost is?

• A)$1.625 per machine hour.
• B)$24,000 plus $0.50 per machine hour.
• C)$2.00 per machine hour.
• D)$18,000 plus $0.50 per machine hour.

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Definitions:

Language Acquisition

The process by which humans gain the ability to perceive and comprehend language, as well as to produce and use words and sentences to communicate.

Insight Theory

A psychological theory suggesting that problem-solving can sometimes happen suddenly through understanding the relationships between various parts of a problem rather than through trial and error.

Language On Thinking

The influence of language on cognitive processes and the way individuals conceptualize the world.

Generic Use

The application or utilization of something in a general or broad manner, not specific to any brand or patent.