What Is the Variable Cost for Maintenance Per Machine Hour

question 45

Multiple Choice

What is the variable cost for maintenance per machine hour?

• A) $0.75.
• B) $1.30.
• C) $1.35.
• D) $1.44.VC/hr.= (130,000 - 115,000)/(100,000 - 80,000)= $.75

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Definitions:

Sales And Excise Taxes

Sales and excise taxes are forms of indirect taxation imposed on the sale of certain goods and services, where excise taxes are often levied on specific products like tobacco or alcohol.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, often used as inputs in the production of other goods or services.

Purchases

Purchases refer to the action of obtaining goods or services in exchange for money, marking a basic economic transaction between buyers and sellers.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.