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Maintenance Costs at Red Dot Manufacturing Over the Past Six

Question 215

Multiple Choice

Maintenance costs at Red Dot Manufacturing over the past six months are listed in the following table.  Month  Maintenance cost  Machine hours  January $9,50015,800 February $9,86017,300 March $8,60014,500 April $8,84016,100 May $8,60017,100 June $8,10015,500\begin{array} { | l | c | c | } \hline \text { Month } & \text { Maintenance cost } & \text { Machine hours } \\\hline \text { January } & \$ 9,500 & 15,800 \\\hline \text { February } & \$ 9,860 & 17,300 \\\hline \text { March } & \$ 8,600 & 14,500 \\\hline \text { April } & \$ 8,840 & 16,100 \\\hline \text { May } & \$ 8,600 & 17,100 \\\hline \text { June } & \$ 8,100 & 15,500 \\\hline\end{array}
- Using the high low method,what would the variable maintenance cost per machine hour be?


A) $0.59
B) $0.57
C) $2.22
D) $0.45

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