In the Restin Company Maintenance Costs Are a Mixed Cost $\begin{array}{cc} \text { Variable Cost Per Unit } & \text { Total Fixed Cost } \\\end{array}$

Short Answer

In the Restin Company maintenance costs are a mixed cost. At the low level of activity (80 direct labor hours) maintenance costs are $600. At the high level of activity (200 direct labor hours) maintenance costs are $1100. Using the high-low method what is the variable maintenance cost per unit and the total fixed maintenance cost? $\begin{array}{cc} \text { Variable Cost Per Unit } & \text { Total Fixed Cost } \\\end{array}$
A) $\begin{array}{cc}&&\$ 4.17&&&&&& & \$ 267 \\\end{array}$
B) $\begin{array}{cc} &&\$ 4.17 &&&&&&& \$ 500\\\end{array}$
C) $\begin{array}{cc} &&\$ 5.50 &&&&&&&\$ 220 \\\end{array}$
D) $\begin{array}{cc}&&\$ 5.50&&&&&& &\$ 400\end{array}$