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Question 17 2.5 pts Estimate unit variable cost Total costs Activity volume in units month 1 $155 29 month 2 $95 month 3 $125 19 month 4 $185 24 O $4.00 per hour $6.00 per hour O $3.00 per hour not enough information -- need to know the contribution margin statement in the relevant range $4.50 per hour

Answer 1

Highest activity cost = $155

Lowest activity cost = $95

Highest activity = 29

Lowest activity = 9

Variable cost per hour= (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)

= (155-95)/(29-9)

= 60/20

= $3 per hour

Estimate unit variable cost = $3 per hour

Third option is correct.

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