At an activity level of 8,400 units in a month,Braughton Corporation's total variable maintenance and repair cost is $697,284 and its total fixed maintenance and repair cost is $464,100.What would be the total maintenance and repair cost,both fixed and variable,at an activity level of 8,500 units in a month? Assume that this level of activity is within the relevant range.
A) $1,175,210
B) $1,169,685
C) $1,161,384
D) $1,168,297

Question

Quizplus · Accepted Answer

Variable cost per unit = $697,284 ÷ 8,400 units = $83.01 unit
Total cost = Total fixed cost + Total variable cost
= $464,100 + ($83.01 per unit × 8,500 units)
= $464,100 + $705,585
= $1,169,685

At an Activity Level of 8,400 Units in a Month,Braughton