Linden Manufacturing's electricity costs for the first quarter of 2023 are as follows: Month Production Hours Electricity Cost January 5,200 February 6,100 $9,800 $11,000 $12,800 March 7,300 Using the high-low method, how much is the variable electricity cost per production hour? a. $1.42 b. $1.52 c. $1.75 d. $1.88

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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Linden Manufacturing's electricity costs for the first quarter of 2023 are as follows:
Month Production Hours Electricity Cost
January 5,200
February 6,100
$9,800
$11,000
$12,800
March 7,300
Using the high-low method, how much is the variable electricity cost per production hour?
a. $1.42 b. $1.52 c. $1.75 d. $1.88
Transcribed Image Text:Linden Manufacturing's electricity costs for the first quarter of 2023 are as follows: Month Production Hours Electricity Cost January 5,200 February 6,100 $9,800 $11,000 $12,800 March 7,300 Using the high-low method, how much is the variable electricity cost per production hour? a. $1.42 b. $1.52 c. $1.75 d. $1.88
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