At an Activity Level of 4,500 Machine-Hours in a Month

question 83

Multiple Choice

At an activity level of 4,500 machine-hours in a month, Novosel Corporation's total variable maintenance and repair cost is $394,830 and its total fixed maintenance and repair cost is $105,570. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 4,600 units in a month? Assume that this level of activity is within the relevant range.

• A) $511,520
• B) $505,960
• C) $509,174
• D) $500,400

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Definitions:

ANOVA Table

A table used in analysis of variance to summarize the sources of variation and associated statistical tests.

F-ratio

The F-ratio is a statistic used to compare the variance among group means in an ANOVA test, helping determine if there are any statistically significant differences between the means of three or more unrelated groups.

P-value

A statistical metric indicating the probability of observing the results of a test, or more extreme, under the assumption that the null hypothesis is true.

SSE

Sum of Squared Errors, a measure used in statistics to describe the total deviation of predicted values from the actual values in a dataset.