At an activity level of 8700 machine-hours in a month, Falks Corporation's total variable production engineering cost is $728,19

Question

2 months ago

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At an activity level of 8700 machine-hours in a month, Falks Corporation's total variable production engineering cost is $728,19

0 and its total fixed production engineering cost is $232,290. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 8900 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

Business

2 answers:

soldi70 [3.6K] · Answer 1 · 2026-03-14T16:59:57+03:00

Answer:

$109.80 per unit

Explanation:

To solve the problem, we'll follow this approach

First

Variable cost per unit = $728,190 ÷ 8,700 units

Variable cost per unit = $83.70 each

Fixed cost per unit = $26.10 each

Finally

Total cost = Variable cost + Fixed cost

So we have

Total cost = $83.70 per unit + $26.10 per unit

Total cost = $109.80 per unit

Free_Kalibri [3.7K] · Answer 2 · 2026-03-14T17:00:07+03:00

Answer:

Total cost amounts to $977,220

Explanation:

Variable cost.

These fluctuate based on the level of activity

Variable cost for each machine hour = Total variable cost/machine hours

VC per machine hour = 728,190 /8700= $83.7 for each machine hour

Fixed maintenance costs

The fixed costs remain constant within the activity range. They do not alter with variations in activity within the defined range.

Fixed costs = $232,290.

Total cost for 8,900 hours

= variable cost + fixed cost

= ($83.7 × 8900) + $232,290.

Total cost = $977,220