An analysis of past maintenance costs indicates that maintenance cost is an average of $0.20 per machine hour at an activity level of 10,000 machine hours and $0.25 per machine hour at an activity level of 8,000 machine hours.Assuming that this activity is within the relevant range,what is the total expected maintenance cost if the activity level is 8,700 machine hours?
A) $400.
B) $1,740.
C) $2,000.
D) $2,250.
Correct Answer:
Verified
Q10: What are committed fixed costs?
A) They vary
Q11: The following data pertain to activity
Q12: What are discretionary fixed costs?
A) They vary
Q13: What is an activity base?
A) It is
Q14: Which of the following is an example
Q16: Which of the following is an example
Q17: At an activity level of 10,000 units,total
Q18: Contribution margin is the excess of revenues
Q19: What does the term "relevant range" mean?
A)
Q20: The linear equation Y = a +
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents