Bell Company Has Provided the Following Data for Maintenance Costs

question 42

Multiple Choice

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

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

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Definitions:

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating growth, metabolism, and energy level.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls basic emotions and drives, such as fear, pleasure, and anger.

Reinforcement

In behaviorist psychology, any event that strengthens or increases the likelihood of a behavior by providing a consequence an individual finds rewarding.

Behavior

Actions or reactions of individuals or groups in response to external or internal stimuli.