Kizspy | Question: 25
(Choose 1 answer)
At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours.The performance report for July showed that actual maintenance costs totaled USD9,800 and that the associated rate variance was USD200 unfavorable. If 8,000 machine-hours were actually worked during July,the budgeted maintenance cost per machine-hour was:
A. USD1.20
B. USD1.25
C. USD1.275
D. USD1.225
E. None of these
