Using the high-low method of analysis, the estimated variable lubrication cost per machine hour is closest to:

A) $1.50
B) $1.25
C) $0.67
D) $1.40

High-low Method

A technique used in cost accounting to determine the variable and fixed components of a cost by analyzing the highest and lowest levels of activity.

Variable Cost

Expenses that fluctuate in direct proportion to the amount of production or sales, including items like labor and materials.

Machine Hour

A measure of production time, where costs are attributed based on the number of hours a machine is operated.