In the Restin Company, Maintenance Costs Are a Mixed Cost

question 135

Short Answer

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? $$\begin{array} { l c c } & \text { Variable Cost PerUnit } & \text { Total Fixed Cost } \\\text { a. } & \$ 4.17 & \$ 267 \\\text { b. } & \$ 4.17 & \$ 500 \\\text { c. } & \$ 5.50 & \$ 220 \\\text { d. } & \$ 5.50 & \$ 400\end{array}$$

---

Definitions:

Asexually

Reproducing without the involvement of sex cells, resulting in offspring genetically identical to the parent.

Gemmae

Small asexual reproductive structures produced by some plants, such as mosses and liverworts, which can develop into new individuals.

Liverworts

Simple, non-vascular plants belonging to the division Marchantiophyta, found in moist, shady environments and playing roles in ecosystems as pioneer species.

Sago Palms

Tropical plants of the genus Cycas, known for their large compound leaves and the production of sago, a starch extracted from their trunks.