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In the Restin Company, Maintenance Costs Are a Mixed Cost

Question 149

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In the Restin Company, maintenance costs are a mixed cost.At the low level of activity (160 direct labor hours), maintenance costs are $600.At the high level of activity (400 direct labor hours), maintenance costs are $1,100.Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost?  Variable Cost Per Unit  Total Fixed Cost  a. $2.08$268 b. $2.08$500 c. $2.75$220 d. $2.75$400\begin{array}{lll}&\text { Variable Cost Per Unit }&\text { Total Fixed Cost }\\\text { a. } & \$ 2.08 & \$ 268 \\\text { b. } & \$ 2.08 & \$ 500 \\\text { c. } & \$ 2.75 & \$ 220 \\\text { d. } & \$ 2.75 & \$ 400\end{array}

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