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IMPORTANT. Please show you work for this problem by handwriting any supporting calculations on your own paper and submitting
Clayton Construction Co.occasionally has to rent a crane to complete a clients project Help the owner understand these costs
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Answer #1

Answer :-

Variable Cost Per Hour = (Highest Activity Cost-Lowest Activity Cost)/(Highest Activity Hours-Lowest Activity Hours)

= (4,880-4,400)/(85-60)

= $19.20

Fixed Cost = Highest Activity Cost - (Highest Activity Hours x Variable Cost Per Hour)

= 4,880 - (85 x 19.20)

= $3,248

Monthly Cost equation

Total Cost = Total Fixed Cost + Variable Cost Per Hour x Crane Operating Hours

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