The following are the total maintenance costs incurred by the Maintenance Division over the past...
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The following are the total maintenance costs incurred by the Maintenance Division over the past six months: This total cost consists of the cost of electric power, depreciation of equipment and machinery, and repair costs. At the 20,000 repair hour level, the costs involved are: V: Variable Cost F: Fixed Cost M: Mixed Cost Required: a) Based on the costs above, determine the composition of July's maintenance costs, which amount to RM 58,250 . (5 marks) b) Using the high-low method, prepare a cost formula for repair expenses. (5 marks) c) Prepare a cost formula for the total maintenance cost for the Maintenance Division. Calculate the expected cost at an activity level equal to 80,000 maintenance hours
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The following are the total maintenance costs incurred by the Maintenance Division over the past six months: This total cost consists of the cost of electric power, depreciation of equipment and machinery, and repair costs. At the 20,000 repair hour level, the costs involved are: V: Variable Cost F: Fixed Cost M: Mixed Cost Required: a) Based on the costs above, determine the composition of July's maintenance costs, which amount to RM 58,250 . (5 marks) b) Using the high-low method, prepare a cost formula for repair expenses. (5 marks) c) Prepare a cost formula for the total maintenance cost for the Maintenance Division. Calculate the expected cost at an activity level equal to 80,000 maintenance hours 