Reference no: EM132843573

Problem 1: In the Marigold, maintenance costs are a mixed cost. At the low level of activity (40 direct labor hours), maintenance costs are $300. At the high level of activity (300 direct labor hours), maintenance costs are $1650. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost?

Variable Cost Per Unit            Total Fixed Cost
a) $5.19                                  $93
b) $5.50                                   $110
c) $5.50                                    $600
d) $5.19                                     $1350