Erkkila Inc. reports that at an activity level of 7,100 machine- hours in a month, its total variable inspection cost is $424,730 and its total fixed inspection cost is $183,446. What would be the average fixed inspection cost per unit at an activity level of 7,400 machine-hours in a month? Assume that this level of activity is within the relevant range. a. $24.79 b. $85.66 c. $25.84 d. $33.98

Erkkila Inc. reports that at an activity level of 7,100 machine- hours in a month, its total variable inspection cost is $424,730 and its total fixed inspection cost is $183,446. What would be the average fixed inspection cost per unit at an activity level of 7,400 machine-hours in a month? Assume that this level of activity is within the relevant range. a. $24.79 b. $85.66 c. $25.84 d. $33.98

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

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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