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Phantasy [73]
3 years ago
14

Erkkila Incorporated reports that at an activity level of 6,800 machine-hours in a month, its total variable inspection cost is

$426,530 and its total fixed inspection cost is $197,309. What would be the average fixed inspection cost per unit at an activity level of 7,100 machine-hours in a month
Business
1 answer:
Mashutka [201]3 years ago
3 0

Answer:

27.79

Explanation:

According to the given situation, the computation of average fixed inspection cost per unit is shown below:-

Average fixed cost of inspection = Inspection cost ÷ Machine hous in a month

= $197,309 ÷ 7,100

= 27.79

Therefore for computing the average fixed inspection cost per unit we simply applied the above formula.

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