Summit Manufacturing accumulates the following data concerning a mixed cost, using machine hours as the activity level. Machine Hours Total Cost July 1,500 $4,200 August 2,800 $5,900 September 3,200 $6,500 October 2,000 $4,900 November 2,500 $5,300 Using the high-low method, the variable cost per machine hour is: A. $1.20, while total fixed costs are $2,400. B. $1.35, while total fixed costs are $2,175. C. $0.90, while total fixed costs are $2,700. D. $1.50, while total fixed costs are $1,950.

Summit Manufacturing accumulates the following data concerning a mixed cost, using machine hours as the activity level. Machine Hours Total Cost July 1,500 $4,200 August 2,800 $5,900 September 3,200 $6,500 October 2,000 $4,900 November 2,500 $5,300 Using the high-low method, the variable cost per machine hour is: A. $1.20, while total fixed costs are $2,400. B. $1.35, while total fixed costs are $2,175. C. $0.90, while total fixed costs are $2,700. D. $1.50, while total fixed costs are $1,950.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 9P: Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The...

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