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

question 44

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 estimate of total machine costs at Wayside when 3,700 machine hours are used?

• A)$144,000
• B)$70,000
• C)$140,000
• D)$74,000
• E)None of the answer choices is correct.

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Definitions:

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