Maintenance Costs at a Tierce Corporation Factory Are Listed Below

Multiple Choice

Maintenance costs at a Tierce Corporation factory are listed below: Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, these estimates would be closest to:

A) $14.54 per machine-hour; $52,671 per month
B) $9.27 per machine-hour; $19,076 per month
C) $0.11 per machine-hour; $52,591 per month
D) $9.27 per machine-hour; $19,071 per month