Bava Company Wants to Develop a Cost Function for Its

question 14

Multiple Choice

Bava Company wants to develop a cost function for its maintenance costs to estimate such costs for the coming year. The following data are available: $\begin{array}{llr}& \text { Direct } & \text { Maintenance } \\\text { Month } & \text { Labour Hours } & \text { Costs Incurred }\\\text { June } & 4,000 & \$ 900 \\\text { July } & 6,500 & 1,325 \\\text { August } & 7,000 & 1,500 \\\text { September } & 5,500 & 1,150\end{array}$ Using the high-low method, what is the variable maintenance cost per direct labour hour?

• A) $1.00
• B) $0.10
• C) $0.20
• D) $1.50

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Definitions:

Autonomic Systems

Refers to the autonomic nervous system, which controls involuntary body functions such as heartbeat, digestion, and breathing.

Somatosensory Cortex

The somatosensory cortex is a region of the brain responsible for processing sensory information from various parts of the body, such as touch, temperature, and pain.

Parietal Lobe

The region of the brain located at the top of the head, responsible for processing sensory information regarding the location of parts of the body.

Motor Cortex

The region of the cerebral cortex involved in the planning, control, and execution of voluntary movements.