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Katlego Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected as follows: Month                   Lease cost        Machine hours April                      R15,000            800 May                      10,000               600 June                      12,000               770 July                       16,000                1000  Using the high-low method, calculate the variable rate for the lease cost. a. R25 b. R15 c. R65 d. R59

Katlego Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected as follows: Month                   Lease cost        Machine hours April                      R15,000            800 May                      10,000               600 June                      12,000               770 July                       16,000                1000  Using the high-low method, calculate the variable rate for the lease cost. a. R25 b. R15 c. R65 d. R59

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge...
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Katlego Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected as follows:


Month                   Lease cost        Machine hours

April                      R15,000            800

May                      10,000               600

June                      12,000               770

July                       16,000                1000 

Using the high-low method, calculate the variable rate for the lease cost.
a. R25
b. R15
c. R65
d. R59

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