In the Restin Company, Maintenance Costs Are a Mixed Cost

question 42

Short Answer

In the Restin Company, maintenance costs are a mixed cost.At the low level of activity (160 direct labor hours), maintenance costs are $600.At the high level of activity (400 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? $\begin{array}{lll}&\text { Variable Cost Per Unit }&\text { Total Fixed Cost }\\\text { a. } & \$ 2.08 & \$ 268 \\\text { b. } & \$ 2.08 & \$ 500 \\\text { c. } & \$ 2.75 & \$ 220 \\\text { d. } & \$ 2.75 & \$ 400\end{array}$

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Definitions:

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Specialized units within police forces designated for controlling crowds, maintaining public order, and responding to riots and large-scale disturbances.

Berlin Wall

A fortified barrier that divided East and West Berlin from 1961 to 1989, symbolizing the Cold War division between the communist and non-communist blocs.

Cold War

The period of geopolitical tension between the Soviet Union and the United States and their respective allies from the end of World War II until the dissolution of the Soviet Union in 1991.