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Determine the variable cost per machine hour

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Question - The Wiscow Manufacturing Company recorded overhead costs of $21,500 at an activity level of 5,000 machine hours and $8,000 at 2,500 machine hours. The records also indicated that overhead of $10,000 was incurred at 4,200 machine hours. Using the high-low method to estimate the cost equation, determine the variable cost per machine hour.

$5.40

$14.38

$1.18

$4.60

Reference no: EM131969072

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