An analysis or past maintenance costs indicates that maintenance cost is an average or $0.40 per machine-nour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machine- hours. Assuming that this activity is within the relevant range, what is the total expected maintenance cost if the activity level is 18,500 machine-hours?

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An analysis or past maintenance costs indicates that maintenance cost is an average or $0.40 per machine-nour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machine- hours. Assuming that this activity is within the relevant range, what is the total expected maintenance cost if the activity level is 18,500 machine-hours? $1,600 $6,960 $8,000 $9,000 QUESTION 2 Which costs will change with an increase in activity within the relevant range? Total fixed costs and total variable cost. O Per unit fixed costs and total variable cost. Per unit variable cost and per unit fixed cost. Per unit fixed cost and total fixed cost. QUESTION 3 Expense #1 is a fixed cost; expense #2 is a variable cost. During the current year, the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that: O expense # 1 will be unchanged. expense #2 will decrease. expense #1 will decrease. 1 pc 1 po

Expert Answer

1. Answer: $8000 Explanation: Total cost at activity level 20000 = $0.40 x 20000 = $8 View the full answer