# OF MACHINE HRS.
COSTS
HIGH 9000 24800
LOW -3000 -9800
TOTAL 6000 15000
1500/6000 = 2.5/ Machine hrs.
b.Total fixed costs HIGH LOW
Variable cost 24800 9800
fixed cost:
( 9000x2.5) -22500
(3000x2.5) -7500
Total fixed
cost 2300 2300
c. 8200 machine hrs.
how much is the estimated maintenace costs?
Variable cost ( 8200x2.5) 20500
Add: Fixed cost 2300
Total Fixed costs 22800
22800/8200= 2.78 Estimated machine hrs.