At Eady Company, Maintenance Is a Variable Cost That Varies

question 71

Multiple Choice

At Eady Company, maintenance is a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totaled £8,650 and that the associated spending variance was £250 unfavourable. If 5,000 machine-hours were actually worked during July, the budgeted maintenance cost per machine-hour was

• A)£1.73.
• B)£1.78.
• C)£1.68.
• D)£1.83.

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Definitions:

Truman Doctrine

A United States policy, announced by President Truman in 1947, to provide military and economic assistance to countries threatened by communism.

Containment Doctrine

A foreign policy strategy aimed at preventing the expansion of a hostile power or ideology, particularly associated with the United States' approach to the Soviet Union during the Cold War.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies from the end of World War II in 1945 until the dissolution of the Soviet Union in 1991, characterized by threats, propaganda, and other measures short of open warfare.