ErkkilaIncorporated Reports That at an Activity Level of 2,100 Machine-Hours

Multiple Choice

ErkkilaIncorporated reports that at an activity level of 2,100 machine-hours in a month, its total variable inspection cost is $69,846 and its total fixed inspection cost is $9,072.What would be the average fixed inspection cost per unit at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

A) $37.58
B) $4.32
C) $15.23
D) $3.78