Question: Help An analysis or past maintenance costs inaicates that maintenance cost 15 an average or $0.40 per macnine-nour at an activity level of 20,000 machine-hours
An analysis or past maintenance costs inaicates that maintenance cost 15 an average or \$0.40 per macnine-nour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machinehours. 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. 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: expense #1 will be unchanged. expense #2 will decrease. expense #1 will decrease
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
