The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past yearMachineHours18,0006,000Busiest month (June)Slowest month (December)What are the direct labor costs per machine hour?Multiple Choice$21.50$17.25DirectLabor Costs$285,000$129,000

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Description: The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past yearMachineHours18,0006,000Busiest month (June)Slowest month (December)What are the direct labor costs per machine hour?Mu

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The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year Machine Hours 18,000 Direct Labor Costs $285,000 6,000 $129,000 Busiest month (June) Slowest month (December) What are the direct labor costs per machine hour? Multiple Choice $2150 $17.25

The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year Machine Hours 18,000 Direct Labor Costs $285,000 6,000 $129,000 Busiest month (June) Slowest month (December) What are the direct labor costs per machine hour? Multiple Choice $2150 $17.25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At high level of activity in November, 8000 machine hours were run and power cost were $18,00. In April, a month of low activity, 2000 machine hours were run and power cost amounted to $9,000. Using the high-low method, the estimated fixed cost element of power cost is.
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