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The document contains cost information for high and low machine hours. It shows that total machine hours were 6000 with total costs of $15000, resulting in a variable cost of $2.5 per machine hour. It then calculates total fixed costs of $2300 for both high and low machine hours. Finally, it estimates that for 8200 machine hours, the total maintenance costs would be $22,800, resulting in an estimated cost of $2.78 per machine hour.
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0% found this document useful (0 votes)
77 views1 page

Mas 1

The document contains cost information for high and low machine hours. It shows that total machine hours were 6000 with total costs of $15000, resulting in a variable cost of $2.5 per machine hour. It then calculates total fixed costs of $2300 for both high and low machine hours. Finally, it estimates that for 8200 machine hours, the total maintenance costs would be $22,800, resulting in an estimated cost of $2.78 per machine hour.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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# 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.

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