Calculate the maintenance cost

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Reference no: EM131258182

The cost formula for the maintenance department of Rainbow, Ltd., is $19,300 per month plus $7.60 per machine hour used by the production department.

Required:

a. Calculate the maintenance cost that would be budgeted for a month in which 6,700 machine hours are planned to be used.

b. Prepare an appropriate performance report for the maintenance department assuming that 7,070 machine hours were actually used in the month of May and that the total maintenance cost incurred was $68,900.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Reference no: EM131258182

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