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At Long Co., electricity cost starts with a minimum fixed cost and after that, there is a perfectly variable expense. Using estimated machine hours: Machine hours Cost 50,000 $102,000 60,000 Required: $122,000 a) What is the estimated variable cost per machine hour? b) What is the estimated TOTAL fixed cost?

At Long Co., electricity cost starts with a minimum fixed cost and after that, there is a perfectly variable expense. Using estimated machine hours: Machine hours Cost 50,000 $102,000 60,000 Required: $122,000 a) What is the estimated variable cost per machine hour? b) What is the estimated TOTAL fixed cost?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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At Long Co., electricity cost starts with a minimum fixed cost and after that, there is a perfectly variable expense. Using estimated machine hours: Machine hours Cost 50,000 $102,000 60,000 Required: $122,000 a) What is the estimated variable cost per machine hour? b) What is the estimated TOTAL fixed cost?
Transcribed Image Text:At Long Co., electricity cost starts with a minimum fixed cost and after that, there is a perfectly variable expense. Using estimated machine hours: Machine hours Cost 50,000 $102,000 60,000 Required: $122,000 a) What is the estimated variable cost per machine hour? b) What is the estimated TOTAL fixed cost?
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