Question: In Bonita, maintenance costs are mixed costs. At a low level of activity (100 direct labor hours), maintenance costs are $1,200. At the high level of activity (400 direct labor hours), maintenance costs are $2,200. Variable Cost Per Unit Total Fixed Cost $3.33 $3.33 $5.50 $1,000 $868 $275 $2,600 $5.50 Using the high-low method, what are the variable maintenance cost per unit and the total fixed maintenance cost?
Question: In Bonita, maintenance costs are mixed costs. At a low level of activity (100 direct labor hours), maintenance costs are $1,200. At the high level of activity (400 direct labor hours), maintenance costs are $2,200. Variable Cost Per Unit Total Fixed Cost $3.33 $3.33 $5.50 $1,000 $868 $275 $2,600 $5.50 Using the high-low method, what are the variable maintenance cost per unit and the total fixed maintenance cost?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...
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What are the variable maintenance cost per unit?
Transcribed Image Text:Question:
In Bonita, maintenance costs are mixed costs. At a low level of activity (100 direct labor
hours), maintenance costs are $1,200. At the high level of activity (400 direct labor hours),
maintenance costs are $2,200.
Variable Cost Per Unit Total Fixed Cost
$3.33
$3.33
$5.50
$1,000
$868
$275
$2,600
$5.50
Using the high-low method, what are the variable maintenance cost per unit and the total
fixed maintenance cost?
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