Using the High-Low Method and the Information Below,compute the Variable

question 15

Multiple Choice

Using the high-low method and the information below,compute the variable cost per telephone hour for PSA Corporation.

• A)$10.00
• B)$40.00
• C)$26.91
• D)$45.00

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor costs.

Direct Labor

The compensation and perks given to workers directly engaged in creating goods or delivering services.

Ceramic Tile

A durable, hard flooring material made from shaping and firing clay, often used for floors and walls.

Budgeted Unit Sales

An estimate of the number of units a company expects to sell over a certain period, often used for planning and strategic purposes.