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 total variable maintenance cost at an activity level of 5,600 machine-hours in a month? Assume that this level of activity is within the relevant range.
A)$163,072
B)$268,604
C)$114,268
D)$120,736

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 total variable maintenance cost at an activity level of 5,600 machine-hours in a month? Assume that this level of activity is within the relevant range.
A)$163,072
B)$268,604
C)$114,268
D)$120,736

Quizplus · Accepted Answer

Variable maintenance cost per unit = Total variable maintenance cost F1F1F1S1F1F1F10 Total activity
= $114,268 F1F1F1S1F1F1F10 5,300 machine-hours
Total variable maintenance cost = Variable maintenance cost per unit F1F1F1S1F1F1F10 Total activity
= $21.56 per machine-hours F1F1F1S1F1F1F10 5,600 machine-hours
= $120,736

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