In the Restin Company, maintenance costs are a mixed cost. At the low level of activity (80 direct labor hours), maintenance costs are $600. At the high level of activity (200 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost? $$\begin{array} { l c c }
& \text { Variable Cost PerUnit } & \text { Total Fixed Cost } \
\text { a. } & \$ 4.17 & \$ 267 \
\text { b. } & \$ 4.17 & \$ 500 \
\text { c. } & \$ 5.50 & \$ 220 \
\text { d. } & \$ 5.50 & \$ 400
\end{array}$$

Question

In the Restin Company, maintenance costs are a mixed cost. At the low level of activity (80 direct labor hours), maintenance costs are $600. At the high level of activity (200 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost? $$\begin{array} { l c c } 
& \text { Variable Cost PerUnit } & \text { Total Fixed Cost } \
\text { a. } & \$ 4.17 & \$ 267 \
\text { b. } & \$ 4.17 & \$ 500 \
\text { c. } & \$ 5.50 & \$ 220 \
\text { d. } & \$ 5.50 & \$ 400
\end{array}$$

Quizplus · Accepted Answer

The Answer of In the Restin Company, maintenance costs are a mixed cost. At the low level of activity (80 direct labor hours), maintenance costs are $600. At the high level of activity (200 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost? $$\begin{array} { l c c } 
& \text { Variable Cost PerUnit } & \text { Total Fixed Cost } \
\text { a. } & \$ 4.17 & \$ 267 \
\text { b. } & \$ 4.17 & \$ 500 \
\text { c. } & \$ 5.50 & \$ 220 \
\text { d. } & \$ 5.50 & \$ 400
\end{array}$$

In the Restin Company, Maintenance Costs Are a Mixed Cost