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 $1100.Using the high-low method what is the variable maintenance cost per unit and the total fixed maintenance cost? $$\begin{array} { l c c }
& \text { Variable Cost PerUnit } & \text { Total Fixed Cost } \
\hline \text { a. } & \$ 4.17 & \$ 267 \
\text { b. } & \$ 4.17 & \$ 500 \
\text { c. } & \$ 5.50 & \$ 220 \
\text { d. } & \$ 5.50 & \$ 400
\end{array}$$

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 $1100.Using the high-low method what is the variable maintenance cost per unit and the total fixed maintenance cost? $$\begin{array} { l c c } 
& \text { Variable Cost PerUnit } & \text { Total Fixed Cost } \
\hline  \text { a. } & \$ 4.17 & \$ 267 \
\text { b. } & \$ 4.17 & \$ 500 \
\text { c. } & \$ 5.50 & \$ 220 \
\text { d. } & \$ 5.50 & \$ 400
\end{array}$$

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 $1100.Using the high-low method what is the variable maintenance cost per unit and the total fixed maintenance cost? $$\begin{array} { l c c } 
& \text { Variable Cost PerUnit } & \text { Total Fixed Cost } \
\hline  \text { a. } & \$ 4.17 & \$ 267 \
\text { b. } & \$ 4.17 & \$ 500 \
\text { c. } & \$ 5.50 & \$ 220 \
\text { d. } & \$ 5.50 & \$ 400
\end{array}$$

In the Restin Company Maintenance Costs Are a Mixed Cost