Human nature is always trying to defend its own interests and strive to maximize self-interest. But disregarding the interests o
1 answer:
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Answer: $108.24 per machine hour
Explanation:
Given that,
If the company incurs 7,200 machine hours then,
Total variable production quality cost = $556,416
Total fixed production quality cost = $226,008
Variable production quality cost per machine hour:
=
=
= $77.28 per machine hour
If the company incurs 7,300 machine hours then,
Total production cost = variable production quality cost + fixed production quality cost
= $77.28 per machine hour × 7,300 + $226,008
= $564,144 + $226,008
= $790,152
Total production quality cost per unit =
=
= $108.24 per machine hour