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Commerce · Q461

Costing

Graduate and Post Graduate · Commerce · question 461

Q461

If difference between costs linked to highest and lowest observation of cost driver is 36000 and observation of cost driver is 30 machine hours, then slope coefficient would be

A.
$1,200
Answer
B.
$1,400
C.
$1,600
D.
$1,800

Answer: Option A

Solution

Answer: Option A
Solution:
Slope coefficient = Difference between costs linked to highest and lowest observation of cost driver ÷ Observation of cost driver
= 1,200
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