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?
|
Variable Cost |
Total |
|
|
Per Unit |
Fixed Cost |
|
|
$8.33 |
$267 |
|
|
$8.33 |
$500 |
|
|
$11.00 |
$220 |
|
|
$15.00 |
$400 |