Exhibit 5-4 Wayside Company Has Machine Hours of 5,000 and Machine Costs

question 35

Multiple Choice

Exhibit 5-4
Wayside Company has machine hours of 5,000 and machine costs of $170,000 at the high data point.Machine hours are 2,000 and machine costs are $110,000 at the low data point.Wayside uses the high-low method to estimate costs.
-Refer to Exhibit 5-4.What is the estimated cost per machine hour?

• A)$34
• B)$55
• C)$20
• D)$40
• E)None of the answer choices is correct.

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