Given the Following Cost and Activity Observations for Leno Enterprises

question 41

Multiple Choice

Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour.
$\begin{array}{|l|l|l|}\hline & \text { Cost } & \text { Machine Hours } \\\hline \text { September } & \$ 4,100 & 22,000 \\\hline \text { October } & 3,700 & 18,000 \\\hline \text { November } & 3,900 & 19,000 \\\hline \text { December } & 4,500 & 28,000 \\\hline & & \\\hline\end{array}$

• A) $0.08
• B) $4.86
• C) $0.25
• D) $12.50

---

Definitions:

Wear-And-Tear

is a theory that suggests the body ages as a result of accumulated damage to cells, tissues, and organs over time, much like inanimate objects deteriorate.

Senescent

The process or condition of aging, associated with biological and functional declines in living organisms.

Terminal Period

The final stage of life, often referring to the time when an individual is facing death imminently, focusing on palliative care and end-of-life issues.

Primary Deterioration

Refers to the original or main worsening of a condition or situation, before any secondary effects or complications.