At Overland Company,maintenance Cost Is Exclusively a Variable Cost That

question 86

Multiple Choice

At Overland Company,maintenance cost is exclusively a variable cost that varies directly with machine hours.The performance report for July showed that total actual maintenance costs were $9,800 and that the associated spending variance was $200 unfavourable.If 8,000 machine hours were actually worked during July,what was the budgeted maintenance cost per machine hour?

• A) $1.200.
• B) $1.225.
• C) $1.250.
• D) $1.275.

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Definitions:

Useful Life

The estimated span of time during which an asset is expected to be functionally and economically viable for its intended purpose.