In the Restin Company, Maintenance Costs Are a Mixed Cost

Short Answer

In the Restin Company, maintenance costs are a mixed cost.At the low level of activity (160 direct labor hours), maintenance costs are $600.At the high level of activity (400 direct labor hours), maintenance costs are $1,100.Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost? $\begin{array}{lll}&\text { Variable Cost Per Unit }&\text { Total Fixed Cost }\\\text { a. } & \$ 2.08 & \$ 268 \\\text { b. } & \$ 2.08 & \$ 500 \\\text { c. } & \$ 2.75 & \$ 220 \\\text { d. } & \$ 2.75 & \$ 400\end{array}$