Question: Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $33.10

Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $33.10 per hour. When activity jumped to 26,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $27.10.

On the basis of this information, what were total maintenance costs when the company experienced 22,500 machine hours? (Round your intermediate calculations to 2 decimal places final answer to nearest dollar amount.)

Multiple Choice

$159,750. $671,350. $679,750.

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