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(TCO 3) The Wiscow Manufacturing Company recorded overhead costs of $21,500 at an activity level of 5,000 machine

/in /by

(TCO 3) The Wiscow Manufacturing Company recorded overhead costs of $21,500 at an activity level of 5,000 machine

hours and $8,000 at 2,500 machine hours. The records also indicated that overhead of $10,000 was incurred at 4,200 machine hours. Using the high-low method to estimate the cost equation, determine the variable cost per machine hour.

A. $5.40

B. $14.38

C. $1.18

D. $4.60

 
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