Answer:
The total production engineering cost per machine-hour, at an activity level of 8,800 machine-hours in a month: $107.7
Explanation:
At an activity level of 8,400 machine-hours in a month, Curt Corporation's total variable production engineering cost is $732,480.
Variable production engineering cost per unit = $732,480/8,400 = $87.2
At an activity level of 8,800 machine-hours in a month, total fixed production engineering cost is $180,400 - not changing.
Total variable production engineering cost = $87.2 x 8,800 = $767,360
Total production engineering cost = Total variable production engineering cost + total fixed production engineering cost = $767,360 + $180,400 = $947,760
Total variable production engineering cost per machine-hour = $947,760/8,800 = $107.7
