Exhibit 5-4 Wayside Company Has Machine Hours of 5,000 and Machine Costs

Multiple Choice

Exhibit 5-4
Wayside Company has machine hours of 5,000 and machine costs of $170,000 at the high data point.Machine hours are 2,000 and machine costs are $110,000 at the low data point.Wayside uses the high-low method to estimate costs.
-Refer to Exhibit 5-4.What is the estimated cost per machine hour?

A) $34
B) $55
C) $20
D) $40
E) None of the answer choices is correct.