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The cost formula for the maintenance department of Rainbow, Ltd., is $19,400 per month plus $7.80 per machine hour used by the production department. Required:
The cost formula for the maintenance department of Rainbow, Ltd., is $19,400 per month plus $7.80 per machine hour used by the production department.
Required:
a. Calculate the maintenance cost that would be budgeted for a month in which 6,700 machine hours are planned to be used.
b. Prepare an appropriate performance report for the maintenance department assuming that 7,050 machine hours were actually used in the month of May and that the total maintenance cost incurred was $68,940.
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