Answer:
Results are below.
Explanation:
<u>First, we need to calculate the variable and fixed costs:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (10,210 - 8,050) / (1,055 - 335)
Variable cost per unit= $3
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 10,210 - (3*1,055)
Fixed costs= $7,045
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 8,050 - (3*335)
Fixed costs= $7,045
<u>Now, the total cost for 1,180 hours:</u>
Total cost= 7,045 + 3*1,180
Total cost= $10,585