Question 30

At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine hours. The performance report for July showed that total actual maintenance costs were $9,800 and that the associated spending variance was $200 unfavourable. If 8,000 machine hours were actually worked during July, what was the budgeted maintenance cost per machine hour?

Question 30 options:

A)

$1.225.

B)

$1.250.

C)

$1.275.

D)

$1.200.