Board? Games, Inc. makes board games. The following data pertains to the last si
ID: 2527613 • Letter: B
Question
Board? Games, Inc. makes board games. The following data pertains to the last six? months:
Direct Labor Hours
Manufacturing Overhead
Month 1
?45,000
?$295,000
Month 2
62,000
$313,000
Month 3
?57,000
?$323,000
Month 4
?52,000
?$247,250
Month 5
?34,000
?$178,200
Month 6
23,000
$164,500
Based on this? data, what is the value of? "v" in the equation y? = vx? + f?? (Round intermediary calculations to the nearest? cent.)
A. $3.81
B. $5.67
C. .18
D. .26
Direct Labor Hours
Manufacturing Overhead
Month 1
?45,000
?$295,000
Month 2
62,000
$313,000
Month 3
?57,000
?$323,000
Month 4
?52,000
?$247,250
Month 5
?34,000
?$178,200
Month 6
23,000
$164,500
Explanation / Answer
V = Variable cost per machine hour :
Variable cost per machine hour = Change in cost/Change in machine hour
= (313000-164500)/(62000-23000)
Variable cost per machine hour = 3.81
so answer is a) $3.81