A factory has done an analysis of the maintenance department cost showing that there is a fixed element of Shs. 500,000 per month and a variable element related to machine hours amounting to Shs. 2,250 per machine hour. What is the expected cost for a month when the planned activity level is (i) 1,500 machine hours (ii) 1,800 machine hours?

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To calculate the expected cost for a month we need to consider both the fixed element and the variab... View the full answer