COST BEHAVIOR Alisha Incorporated manufactures medical stints for use in heart bypass surgery. Based on past experience,
Question:
COST BEHAVIOR Alisha Incorporated manufactures medical stints for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance cost ¼ $310,000 þ $18.50X, where X ¼ Number of heart stints. Last year, Alisha produced 150,000 stints. Actual maintenance costs for the year were as expected. Round all answers to two decimal places.
Required:
. What is the total maintenance cost incurred by Alisha last year?
. What is the total fixed maintenance cost incurred by Alisha last year?
. What is the total variable maintenance cost incurred by Alisha last year?
. What is the maintenance cost per unit produced?
. What is the fixed maintenance cost per unit?
. What is the variable maintenance cost per unit?
Exercise
Step by Step Answer:
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen