What would be the total variable maintenance cost at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range.
A) $758,520
B) $403,248
C) $390,240
D) $380,556

Question

Quizplus · Accepted Answer

Variable maintenance cost per unit = Total variable maintenance cost ÷ Total activity
= $390,240 ÷ 9,000 machine-hours
Total variable maintenance cost = Variable maintenance cost per unit × Total activity
= $43.36 per machine-hour × 9,300 machine-hours
= $403,248

What Would Be the Total Variable Maintenance Cost at an Activity