Tech Manufacturing has the following data for the past six months: Month Total Overhead Machine Hours July $12,500 4,000 Aug $13,200 4,400 Sept $11,800 3,600 Oct $12,900 4,200 Nov $11,500 3,500 Dec $13,500 4,500 Using the high-low method, calculate the variable overhead cost per machine hour. A. $2.00 B. $1.80 C. $2.20 D. $2.40

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter3: Cost Behavior
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Tech Manufacturing has the following data for the past six
months:
Month Total Overhead Machine Hours
July $12,500
4,000
Aug
$13,200
4,400
Sept
$11,800
3,600
Oct
$12,900
4,200
Nov
$11,500
3,500
Dec
$13,500
4,500
Using the high-low method, calculate the variable overhead cost
per machine hour.
A. $2.00
B. $1.80
C. $2.20
D. $2.40
Transcribed Image Text:Tech Manufacturing has the following data for the past six months: Month Total Overhead Machine Hours July $12,500 4,000 Aug $13,200 4,400 Sept $11,800 3,600 Oct $12,900 4,200 Nov $11,500 3,500 Dec $13,500 4,500 Using the high-low method, calculate the variable overhead cost per machine hour. A. $2.00 B. $1.80 C. $2.20 D. $2.40
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