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In the Bonita, maintenance costs are a mixed cost. At the low level of activity (100 direct labor hours), maintenance costs are $1200. At the
In the Bonita, maintenance costs are a mixed cost. At the low level of activity (100 direct labor hours), maintenance costs are $1200. At the high level of activity (400 direct labor hours), maintenance costs are $2200. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost?
Variable Cost Per Unit | Total Fixed Cost |
$3.33 | $1000 |
$3.33 | $868 |
$5.50 | $275 |
$5.50 | $2600 |
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