Q397
Slope coefficient is 0.75 and difference in machine hours is 65000 then difference in cost would be
A.
$86,667
B.
$48,750
AnswerC.
$85,000
D.
$55,000
Answer: Option B
Solution
Answer: Option B
Solution:
Slope coefficient = Difference in costs ÷ Difference in machine hoursDifference in cost = Difference in machine hours × Slope coefficient
= 65000 × 0.75 = $48,750