An Analysis of Past Maintenance Costs Indicates That Maintenance Cost

question 68

Multiple Choice

An analysis of past maintenance costs indicates that maintenance cost is an average of $0.20 per machine hour at an activity level of 10,000 machine hours and $0.25 per machine hour at an activity level of 8,000 machine hours.Assuming that this activity is within the relevant range,what is the total expected maintenance cost if the activity level is 8,700 machine hours?

• A) $400.
• B) $1,740.
• C) $2,000.
• D) $2,250.

---

Definitions:

Monocots

A group of flowering plants (monocotyledons) with a single seed leaf, including grasses, lilies, and orchids, characterized by various structural features such as parallel leaf venation.

Rhizobia

Soil bacteria that fix nitrogen after becoming established inside root nodules of legumes.

Infection Threads

Filamentous structures formed by certain bacteria during the infection process of plant roots, facilitating microbial entry.

Legume

(1) A simple, dry fruit that develops from a single carpel and splits open at maturity along two sutures to release seeds. (2) Any member of the pea family (e.g., pea, bean, peanut, alfalfa).