Maintenance Costs at a Neller Corporation Factory Are Listed Below

question 72

Multiple Choice

Maintenance costs at a Neller Corporation factory are listed below:
Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, these estimates would be closest to:

• A) $1.85 per machine-hour; $21,325 per month
• B) $3.77 per machine-hour; $15,648 per month
• C) $9.07 per machine-hour; $26,762 per month
• D) $0.27 per machine-hour; $26,071 per month

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