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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 $5.50 $1,000 $868 $275 $2,600 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 $5.50 $1,000 $868 $275 $2,600 Using the high-low method, what are the variable maintenance cost per unit and the total fixed maintenance cost?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $5.50 $1,000 $868 $275 $2,600 Using the high-low method, what are the variable maintenance cost per unit and the total fixed maintenance cost?
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 $5.50 $1,000 $868 $275 $2,600 Using the high-low method, what are the variable maintenance cost per unit and the total fixed maintenance cost?
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