Buckeye Company Has Provided the Following Data for Maintenance Cost

Multiple Choice

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

A) $7,000 per year plus $0.625 per machine hour.
B) $7,000 per year plus $1.60 per machine hour.
C) $21,625 per year plus $0.625 per machine hour.
D) $27,000 per year plus $1.60 per machine hour.FC = 31,000 - 15,000 * 1.60 = $7,000