The cost formula for the maintenance department of the Eifel Co. is $6,500 per month plus $3.50 per machine hour used by the production department.
a. Calculate the maintenance cost that would be budgeted for the month of May in which 5,700 machine hours are planned to be used.
b. Prepare an appropriate performance report for the maintenance department assuming that 5,860 machine hours were actually used in the month of May, and the total maintenance cost incurred was $28,010.

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The Answer of The cost formula for the maintenance department of the Eifel Co. is $6,500 per month plus $3.50 per machine hour used by the production department.
a. Calculate the maintenance cost that would be budgeted for the month of May in which 5,700 machine hours are planned to be used.
b. Prepare an appropriate performance report for the maintenance department assuming that 5,860 machine hours were actually used in the month of May, and the total maintenance cost incurred was $28,010.

The Cost Formula for the Maintenance Department of the Eifel