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The data below relates to SunRise for January and February of the current year. Maintenance hours Maintenance cost January 4,000 $70,000 February 5,000 $80,000 January
The data below relates to SunRise for January and February of the current year. Maintenance hours Maintenance cost January 4,000 $70,000 February 5,000 $80,000 January and February were the lowest and highest activity levels respectively and SunRise uses the high-low method to analyze cost behaviour. Which of the following statement is true? Multiple Choice Multiple Choice The fixed maintenance cost is $40,000 per month The variable maintenance cost is $16 per hour O The variable maintenance cost is $18 per hour O O O The fixed maintenance cost is $30,000 per month The variable maintenance costs is $12 per hour Orion Inc. needs 10,000 parts to use in its production cycle. Venus has offered to sell the parts to Orion for $44 each. However, 60% of Orion's fixed overhead would still continue regardless of the decision made. The costs for Orion to make the part are: Direct materials Direct labour Fixed overhead $12 $26 $10 What decision should Orion take? Multiple Choice Some other answer Buy part, resulting in $40,000 cost advantage Make part, resulting in $20,000 cost advantage C O Make part, resulting in $40,000 cost advantage. Buy part, resulting in $80,000 cost advantage
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