Cortez Manufacturing reports that at an activity level of 5,000 direct labor hours in a month, its total variable maintenance cost is $312,500 and its total fixed maintenance cost is $125,000. What would be the total variable maintenance cost at an activity level of 5,300 direct labor hours in a month? Assume that this level of activity is within the relevant range.
Cortez Manufacturing reports that at an activity level of 5,000 direct labor hours in a month, its total variable maintenance cost is $312,500 and its total fixed maintenance cost is $125,000. What would be the total variable maintenance cost at an activity level of 5,300 direct labor hours in a month? Assume that this level of activity is within the relevant range.
Chapter6: Activity-based, Variable, And Absorption Costing
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Transcribed Image Text:Cortez Manufacturing reports that at an activity level of 5,000 direct labor
hours in a month, its total variable maintenance cost is $312,500 and its
total fixed maintenance cost is $125,000. What would be the total variable
maintenance cost at an activity level of 5,300 direct labor hours in a
month? Assume that this level of activity is within the relevant range.
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