Figure 3-1 ALF Systems Undertakes Its Own Machine Maintenance

question 113

Multiple Choice

Figure 3-1 ALF Systems undertakes its own machine maintenance.The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour.Last year 275,000 machine hours were used to produce 100,000 units.
-
See Figure 3-1.What is the total maintenance cost per unit produced?

• A) $0.55
• B) $4.20
• C) $5.50
• D) $5.70

---

Definitions:

Vertical Loading

Increasing the responsibility and complexity of an employee's job by adding tasks that are typically performed by higher-level personnel.

Responsibilities

Duties or tasks that an individual or group is expected to carry out or fulfill.

Management

The process of dealing with or controlling things or people, often within an organizational setting.

Vertical Loading

A management concept where employees are given more responsibility and autonomy in their roles, enhancing their involvement in decision-making processes.