Bronte Corp. reports that at an activity level of 5,000 machine-hours in a month, its total variable inspection cost is $315,000, and its total fixed inspection cost is $120,000. What would be the total variable inspection cost at an activity level of 5,400 machine-hours in a month?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...
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I am looking for the correct answer to this general accounting problem using valid accounting standards.
Bronte Corp. reports that at an activity level of 5,000
machine-hours in a month, its total variable inspection
cost is $315,000, and its total fixed inspection cost is
$120,000.
What would be the total variable inspection cost at an
activity level of 5,400 machine-hours in a month?
Transcribed Image Text:Bronte Corp. reports that at an activity level of 5,000 machine-hours in a month, its total variable inspection cost is $315,000, and its total fixed inspection cost is $120,000. What would be the total variable inspection cost at an activity level of 5,400 machine-hours in a month?
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