At an activity level of 5,300 machine-hours in a month, Clyburn Corporation's total variable maintenance cost is $114,268 and its total fixed maintenance cost is $154,336.
-What would be the average fixed maintenance cost per unit at an activity level of 5,600 machine-hours in a month? Assume that this level of activity is within the relevant range.
A)$50.68
B)$27.56
C)$35.79
D)$29.12

Question

At an activity level of 5,300 machine-hours in a month, Clyburn Corporation's total variable maintenance cost is $114,268 and its total fixed maintenance cost is $154,336. 
-What would be the average fixed maintenance cost per unit at an activity level of 5,600 machine-hours in a month? Assume that this level of activity is within the relevant range.
A)$50.68
B)$27.56
C)$35.79
D)$29.12

Quizplus · Accepted Answer

Average fixed maintenance cost = Total fixed maintenance cost F1F1F1S1F1F1F10 Total activity = $154,336 F1F1F1S1F1F1F10 5,600 machine-hours = $27.56 per machine-hours

At an Activity Level of 5,300 Machine-Hours in a Month