Davidson Company's activities for the first three months of 2023 are as follows: Machine Hours Electrical Cost January 2800 February 3200 March 3600 $4,800 $5,600 $6,200 Using the high-low method, how much is the cost per machine hour? a. $1.75 b. $2.15 c. $1.83 d. $1.54

Davidson Company's activities for the first three months of 2023 are as follows: Machine Hours Electrical Cost January 2800 February 3200 March 3600 $4,800 $5,600 $6,200 Using the high-low method, how much is the cost per machine hour? a. $1.75 b. $2.15 c. $1.83 d. $1.54

Cornerstones of Cost Management (Cornerstones Series)

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ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

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Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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Davidson Company's activities for the first three months of 2023 are as
follows:
Machine Hours Electrical Cost
January 2800
February 3200
March
3600
$4,800
$5,600
$6,200
Using the high-low method, how much is the cost per machine hour?
a. $1.75
b. $2.15
c. $1.83
d. $1.54

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The electricity costs and machine hours for a period of 6 months are as follows Hours CostsMonths machine electricityJanuary 2,000 $ 4,800February 2,500 $ 5,200March 3,000 $ 5,400April 2,400 $ 5,000May 2,800 $ 5,600June 2,200 $ 5,000Using the high-low method, what is the formula to use to determine electricity costs at different volumes of electricity hours? (Fixed cost + variable cost × volume). a. Electricity costs = $ 2,800 + ($ 1.00 x number of machine hours) b. Electricity costs = $ 2,600 + ($ 1.00 x number of machine hours) c. Electricity costs = $ 400 + ($ 1.67 x number of machine hours) d. Electricity costs = $ 3,600 + ($ .60 x number of machine hours)