In the Restin Company, maintenance costs are a mixed cost. At the low level of activity (160
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Question:
In the Restin Company, maintenance costs are a mixed cost. At the low level of activity (160 direct labor hours), maintenance costs are $600. At the high level of activity (400 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost?
Variable Cost Per Unit Total Fixed Cost
a. .............. $2.08 ............................ $268
b. .............. $2.08 ............................ $500
c. .............. $2.75 ............................ $220
d. .............. $2.75 ............................ $400
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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