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Calculate the maintenance cost that would be budgeted

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Question - The cost formula for maintenance department of Rainbow ltd is $ 19.000 per month plus $ 7.80 per machine hour used by the production department.

A) Calculate the maintenance cost that would be budgeted for a month in which 6,800 machine hours are planned to be used.

B) Prepare an appropriate performance report for the maintenance department assuming that 7,060 machine hours were actually used in the month of May and that the total maintenance cost incurred was $ 68.910.

Reference no: EM132997190

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