Liva Company Wants to Develop a Cost Function for Its

Multiple Choice

Liva Company wants to develop a cost function for its maintenance costs to estimate such costs for the coming year. The following data are available: Direct Maintenance
Month Labour Hours Costs Incurred
January 4,000 $ 900
February 6,500 1,325
March 7,000 1,500
April 5,500 1,150
Using the high-low method, what is the variable maintenance cost per direct labour hour?

A) $1.00
B) $0.10
C) $0.20
D) $1.50