In the Gabbana Company, maintenance costs are a mixed cost. At the low level of activity (40 direct labor hours), maintenance costs are $600. At the high level of activity (100 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost?
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|
Total |
|
|
Per Unit |
Fixed Cost |
|
|
a |
$8.33 |
$267 |
|
b. |
$ 8.33 |
$500 |
|
c. |
$11 00 |
$220 |
|
d. |
$15.00 |
$400 |
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