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Problem - Fraser Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were as follows:
Month
Lease cost
Machine hours
May
$14,000
900
June
10,500
650
July
12,000
770
Aug
18,000
1,000
Required - Using the high-low method, calculate the variable rate for the lease cost.
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