Milano Company Has an Average Overhead Cost Per Hour of $10.50

question 29

Multiple Choice

Milano Company has an average overhead cost per hour of $10.50 at 3,500 machine hours, and at 3,000 hours it is $11.25. The company managers wish to estimate the overhead cost function. What is the variable overhead cost per machine hour?

• A) $1.00
• B) $2.00
• C) $6.00
• D) $8.00

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Definitions:

Paralanguage

Refers to the non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice, loudness, and pitch.

Verbal Communication

The use of spoken or written words to convey information, ideas, and feelings.

Jargons

Specialized language or terms used by a particular group or profession that may be difficult for others to understand.

Vicariously Liable

Legal responsibility assigned to one party for the actions of another, usually in employer-employee relationships.