Use the Following Information to Answer the Following QuestionsSwan, Inc

question 77

Multiple Choice

Use the following information to answer the following QuestionsSwan, Inc. uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40.
-On the basis of this information, the variable cost per machine hour for Swan was:

• A) $8.40.
• B) $22.00.
• C) $25.00.
• D) $30.40.
• E) $33.40.

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Definitions:

Inflated Positive Expectations

An overly optimistic view or anticipation of outcomes that might not be realistic, often leading to disappointment.

Psychological Contract Breach

The perception that an employer has failed to fulfill one or more of the unwritten expectations of the employment relationship.

Organizational Changes

The processes through which a company or business alters its structures, strategies, operational methods, technologies, or organizational culture.

Incongruence

A state of discrepancy or lack of harmony between two or more elements, such as beliefs, behaviors, or attitudes.