An analysis of a particular cost incurred in a factory revealed that the cost is averages ₱0.40 per machine-hour at an activity level of 20,000 machine hours and increases to an average of ₱0.50 per machine hour at an activity level of 16,000 machine hours. Assuming that this activity is within the relevant range, what is the total expected cost if the activity level is 17,300 machine hours?

An analysis of a particular cost incurred in a factory revealed that the cost is averages ₱0.40 per machine-hour at an activity level of 20,000 machine hours and increases to an average of ₱0.50 per machine hour at an activity level of 16,000 machine hours. Assuming that this activity is within the relevant range, what is the total expected cost if the activity level is 17,300 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 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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