The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:

Total fixed cost element = $90000

Explanation:

To calculate the fixed maintenance cost, first we will use the high-low method to calculate the element of average variable maintenance cost per machine hour in the average total maintenance cost.

The value of highest activity = 24000 * 9.75 = $234000

The value of lowest activity = 20000 * 10.5 = $210000

Average VC per MH = (234000 - 210000) / (24000 - 20000)

Average VC per MH = $6 per machine hour

Total Average variable cost (24000 MH) = 6 * 24000 = $144000

Total fixed cost element = 234000 - 144000 = $90000

the most important factor in the

work process or industry is to retain the interest of the employee. and to

retain them, their salary or profit must be adjusted to the best value. unless

the employee does not do his job properly, employees must receive bonuses or

benefits to ensure them to stay in the company. it will actually make them stay

longer, make them feel important and reduce costs for hiring new employees.

explanation:

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