This question is based on the monthly maintenance expenses of acompany, which are to be analyzed for purposes of construction aflexible budget. Examination of past records disclosed thefollowing costs and volume measures:HighestLowestCost per month$40,000$32,000Machine hours24,00016,000Using the high-low-point method of analysis, the estimatedvariable cost per machine hour isQuestion 8 options:A)$1.08.B)$0.80.C)$2.50.D)$1.00.
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