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At Danfield Manufacturing, electricity cost starts with a minimum fixed cost, and after that, there is a perfectly variable expense. Using estimated machine hours: MACHINE HOURS COST 35,000 55,000 $59,000 $87,000 What is the a) estimated variable cost per machine hour and what is the b) estimated total fixed cost?

At Danfield Manufacturing, electricity cost starts with a minimum fixed cost, and after that, there is a perfectly variable expense. Using estimated machine hours: MACHINE HOURS COST 35,000 55,000 $59,000 $87,000 What is the a) estimated variable cost per machine hour and what is the b) estimated total fixed cost?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...
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At Danfield Manufacturing, electricity cost starts with a minimum fixed cost, and after that, there is a perfectly variable expense. Using estimated machine hours: MACHINE HOURS COST 35,000 55,000 $59,000 $87,000 What is the a) estimated variable cost per machine hour and what is the b) estimated total fixed cost?
Transcribed Image Text:At Danfield Manufacturing, electricity cost starts with a minimum fixed cost, and after that, there is a perfectly variable expense. Using estimated machine hours: MACHINE HOURS COST 35,000 55,000 $59,000 $87,000 What is the a) estimated variable cost per machine hour and what is the b) estimated total fixed cost?
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