Answer:
Total cost per hours= $111.3
Explanation:
Giving the following information:
The activity of 9,600 hours:
Total variable cost= $827,520
Total fixed costs= $248,490.
First, we need to calculate the unitary variable cost:
Unitary variable cost= 827,520/9,600= $86.2
Because the 9,900 units are between the relevant range, <u>the total fixed costs remain the same</u>. <u>For the same reason, the unitary variable cost per hour remains the same. </u>Only the total variable cost varies with production (in unitary terms is constant).
Unitary cost per hout= $86.2
Unitary fixed cost= 248,490/9,900= $25.1
Total cost per hours= $111.3