PART II. PROBLEM SOLVING (20 marks) Direction: Answer the following questions. For each answer you MUST show your work. 1. Al Hassan Manufacturing Company presented the following maintenance expenses. The Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, determine the following: (Marking Scheme: 1 mark for the correct final answer and 1 mark for the solution for each. = 10 Marks) Machine Hours (x) Maintenance Cost (Y) 4,000 85,000 January February 6,000 90,000 March 6,500 100,000 April 8,000 115,000 1. Determine the change level of activity in terms to machine-hours. (2 marks) 2. Determine the change level of activity in terms to maintenance cost. (2 marks) 3. Compute the variable cost per unit. (2 marks) 4. Compute the total fixed cost. (2 marks) 5. Determine what the maintenance cost be if the machine hours were 7,500 in May. (2 marks)