Question: Barton, Inc. had the following data for maintenance cost: . . . . . . . . . . . . 2001 2000 Machine hours

Barton, Inc. had the following data for maintenance cost:

. . . . . . . . . . . . 2001 2000

Machine hours incurred 12,000 16,000

Maintenance cost incurred $23,000 $29,000

The cost formula for maintenance within the relevant range shown above would be:

$5,000 plus $.67 per machine hour.
$23,000 plus $1.50 per machine hour.
$5,000 plus $1.50 per machine hour.
$18,280 plus $.67 per machine hour.

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