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Natasha_Volkova [10]
3 years ago
10

At an activity level of 9,300 machine-hours in a month, Falks Corporation’s total variable production engineering cost is $829,5

60 and its total fixed production engineering cost is $192,960. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 9,600 machine-hours in a month? Assume that this level of activity is within the relevant range
Business
1 answer:
Neko [114]3 years ago
4 0

Answer: $109.3 per machine hour

Explanation: We can compute total production engineering cost per hour by using following equation :-

=cost\:per\:machine\:hour=\frac{fixed\:cost\:+\:variable\:cost}{total\:machine\:hours}

but first we need to calculate variable cost at 9600 hours :-

=\$829,560\times\frac{9600hr}{9300hr}

       = $856,320

now,

=cost\:per\:machine\:hour=\frac{\$192,960+\$856,320}{9600hr}

      =$109.3 per machine hour

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