Bell Company Has Provided the Following Data for Maintenance Costs

Multiple Choice

Bell Company has provided the following data for maintenance costs:
Using the high-low method,what is the cost formula for maintenance cost?

A) $2.00 per machine hour.
B) $1.625 per machine hour.
C) $18,000 plus $0.50 per machine hour.
D) $24,000 plus $0.50 per machine hour.FC = 26,000 - 16,000 * .5 = $18,000.