Scott Company uses the following formula for annual maintenance costs: Total cost = $6,000 + $0.70 per machine hour The current month‟s budget is based on planned machine time of 30,000 hours. Monthly maintenance cost included in this budget is

Jacob Corp. Wishes to determine the fixed portion of its maintenance expense (a semivariable expense), as measured against direct labor hours, for the first 3 months of the year. The inspection costs are fixed; the adjustments necessitated by errors found during inspection account for the variable portion of the maintenance costs. Information for the first quarter is as follows: Direct Labor Hours Maintenance Expense January 34,000 $610 February 31,000 $585 March 34,000 $610 What is the fixed portion of Jacob‟s maintenance expense, rounded to the nearest dollar?

Ace, Inc., estimates its total materials handling costs at two production levels as follows: Cost Gallons $160,000 80,000 $132,000 60,000 What is the estimated total cost for handling 75,000 gallons?

Which one of the following refers to a cost that remains the same as the volume of activity decreases within the relevant range?

An assembly plant accumulates its variable and fixed manufacturing overhead costs in a single cost pool, which is then applied to work in process using a single application base. The assembly plant management wants to estimate the magnitude of the total manufacturing overhead costs for different volume levels of the application activity base using a flexible budget formula. If there is an increase in the application activity base that is within the relevant range of activity for the assembly plant, which one of the following relationships regarding variable and fixed costs is true?