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Runaround Corporation sells running shoes and during January they ran production machines for 22,000 hours total...

Runaround Corporation sells running shoes and during January they ran production machines for 22,000 hours total and incurred $ 10,000 in maintenance costs. During July they ran production machines for 14,000 hours total and incurred $ 7,400 in maintenance costs.   Based on this​ data, what is the variable maintenance cost per machine​ hour?

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Answer #1

variable maintenance cost per machine​ hour = Change in cost /change in machine hours

                    = [10000 - 7400] /[22000-14000]

                    = 2600/ 8000

                     = $ .325 per machine hour

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