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

question 58

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 total fixed cost?

• A)$60,000
• B)$140,000
• C)$55,000
• D)$70,000
• E)None of the answer choices is correct.

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Definitions:

Task Segmentation

The process of dividing a task into smaller, more manageable parts to improve efficiency and performance.

Simulation Exercises

Training and development activities that replicate real-life situations for the purpose of practice, learning, or evaluation.

Role-Playing Exercises

Training or educational activities where participants act out roles in specific scenarios to develop skills, analyze behaviors, or solve problems.

Lecture Method

A traditional form of instruction where a teacher addresses a large group of students, primarily disseminating information verbally.