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Determine the variable cost per machine hour

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Question - Song, Inc., uses the high-low method to analyze cost behavior.

The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour.

When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40.

On the basis of this information, determine the variable cost per machine hour?

Reference no: EM133098691

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