Runaround Corporation sells running shoes and during January they ran production machines for 20,000 hours total and incurred $9,000 in maintenance costs. During July they ran production machines for 14,000 hours total and incurred $7,200 in maintenance costs. Based on this data, what is the variable maintenance cost per machine hour?
A)$0.45 per machine hour
B)$0.30 per machine hour
C)$0.51 per machine hour
D)$3.33 per machine hour

Question

Quizplus · Accepted Answer

The variable maintenance cost per machine hour is calculated by finding the change in cost divided by the change in hours: ($9,000 - $7,200) / (20,000 - 14,000) = $1,800 / 6,000 = $0.30 per machine hour.

Runaround Corporation Sells Running Shoes and During January They Ran