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Question: In Viham, 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 $5.50 $2,600 Using the high-low method, what are the variable maintenance cost per unit and the total fixed maintenance cost?

Question: In Viham, 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 $5.50 $2,600 Using the high-low method, what are the variable maintenance cost per unit and the total fixed maintenance cost?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
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

Question: In Viham, 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 $5.50 $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 Viham, 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 $5.50 $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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