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If slope coefficient is 0.60 and difference in machine hours is 50000, then difference in cost can be

A. $68,700

B. $58,700

C. $30,000

D. $83,333.34

Answer: Option C

Solution (By Examveda Team)

Slope coefficient = Difference in costs ÷ Difference in machine hours
Difference in cost = Difference in machine hours × Slope coefficient
= 50000 × 0.60 = $30,000

This Question Belongs to Commerce >> Costing

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Comments (1)

  1. Ali GuL
    Ali GuL:
    4 years ago

    If we divide 50000/.60 Answer will be D $83333.3 please correct it

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