Answer the Following Questions Using the Information Below:
the Yeppoon

question 59

Multiple Choice

Answer the following questions using the information below:
The Yeppoon Company uses the high-low method to estimate its cost function.The information for 2018 is provided below:
$$\begin{array} { l c c } & \text { Machine-hours } & \text { Costs } \\\text { Highest observation of cost driver } & 2000 & \$ 225000 \\\text { Lowest observation of cost driver } & 1000 & \$ 125000\end{array}$$
-What is the slope coefficient per machine-hour?

• A)$10.00
• B)$12.50
• C)$125.00
• D)$100.00

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Definitions:

Finished Goods Inventory

Products that have completed the manufacturing process but have not yet been sold or distributed.

Direct Labour

Workforce directly involved in manufacturing goods or providing services, whose costs are directly attributed to products or services.

Merchandise Inventory

The goods available for sale to customers in retail or wholesale businesses, valued at lower of cost or market value on the balance sheet.