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
B. $1,400
C. $1,600
D. $1,800
Answer: Option A
Solution(By Examveda Team)
Slope coefficient = Difference between costs linked to highest and lowest observation of cost driver ÷ Observation of cost driver= $36000 ÷ 30 = $1,200
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