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Problem - At an activity level of 8,900 machine-hours in a month, Falks Corporation's total variable production engineering cost is $760,060 and its total fixed production engineering cost is $152,880. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 9,100 machine-hours in a month? Assume that this level of activity is within the relevant range. Round intermediate calculations to two decimal places.
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A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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