Maintenance Costs at a Neller Corporation Factory Are Listed Below

Multiple Choice

Maintenance costs at a Neller 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) $1.85 per machine-hour; $21,325 per month
B) $3.77 per machine-hour; $15,648 per month
C) $9.07 per machine-hour; $26,762 per month
D) $0.27 per machine-hour; $26,071 per month