Utility costs at Service. Inc is a mixture of fixed and variable components. Records indicate that utility costs are an average of $0.40 per hour at an activity level of 9,000 machine hours and $0.25 per hour at an activity level of 18,000 machine hours. Assuming that this activity is within the relevant range. Required: What is the expected total utility cost if the company works 13,000 machine hours?
Utility costs at Service. Inc is a mixture of fixed and variable components. Records indicate that utility costs are an average of $0.40 per hour at an activity level of 9,000 machine hours and $0.25 per hour at an activity level of 18,000 machine hours. Assuming that this activity is within the relevant range. Required: What is the expected total utility cost if the company works 13,000 machine hours?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...
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![Utility costs at Service. Inc is a mixture of fixed and
variable components. Records indicate that utility costs
are an average of $0.40 per hour at an activity level of
9,000 machine hours and $0.25 per hour at an activity
level of 18,000 machine hours. Assuming that this
activity is within the relevant range.
Required:
What is the expected total utility cost if the company
works 13,000 machine hours?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd893758-3266-4436-8ab1-701e42efa1e7%2Fef5bbe2a-6c60-4c67-ba60-d8327ec8ae04%2Feuxdk92_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Utility costs at Service. Inc is a mixture of fixed and
variable components. Records indicate that utility costs
are an average of $0.40 per hour at an activity level of
9,000 machine hours and $0.25 per hour at an activity
level of 18,000 machine hours. Assuming that this
activity is within the relevant range.
Required:
What is the expected total utility cost if the company
works 13,000 machine hours?
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