The cost formula for the maintenance department of the Raven Co.is $13,000 per month plus $6.50 per machine hour used by the production department.
a.Calculate the maintenance cost that would be budgeted for the month of November in which 10,800 machine hours are planned to be used.
b.Prepare an appropriate performance report for the maintenance department assuming that 11,130 machine hours were actually used in the month of November, and the total maintenance cost incurred was $86,485.

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The Answer of The cost formula for the maintenance department of the Raven Co.is $13,000 per month plus $6.50 per machine hour used by the production department.
a.Calculate the maintenance cost that would be budgeted for the month of November in which 10,800 machine hours are planned to be used.
b.Prepare an appropriate performance report for the maintenance department assuming that 11,130 machine hours were actually used in the month of November, and the total maintenance cost incurred was $86,485.

The Cost Formula for the Maintenance Department of the Raven