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:

Proactive Interference

The disruptive effect of previously learned material on the recall of newer material.

Manual Transmission

A type of transmission used in vehicles that requires the driver to manually shift gears using a clutch and gear stick.

Clutch

In a broad sense, a group of similar items or an important situation requiring reliability and precision, often used in sports or mechanical contexts.

Proactive Interference

A phenomenon where older memories inhibit the ability to remember new information.