Wilson Company's Activity for the First Six Months of the Current

question 63

Multiple Choice

Wilson Company's activity for the first six months of the current year is as follows:
$\begin{array} {| l | r | r | } \hline & \text { Machine Hours } & \text { Electrical Cost } \\\hline \text { January } & 2,000 & \$ 1,560 \\\hline \text { February } & 3,000 & 2,200 \\\hline \text { March } & 2,400 & 1,750 \\\hline \text { April } & 1,900 & 1,520 \\\hline \text { May } & 1,800 & 1,480 \\\hline \text { June } & 2,100 & 1,600\\\hline\end{array}$


-Using the high-low method,what is the variable cost per machine hour?

• A) $0.40 per hour.
• B) $0.60 per hour.
• C) $0.64 per hour.
• D) $0.67 per hour.

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Definitions:

Amortization Expense

The systematic and gradual charge to expense of the cost of an intangible asset over its useful life.

Functional Currency

A redefined definition: The currency that a business uses for most of its transactions, reporting, and financial statements.

Capital Assets

Long-term tangible or intangible assets used in operations of a business that are not intended for sale in the regular course of business.

Exchange Rates

The rate at which one currency can be exchanged for another currency.