In the Gabbana Company, maintenance costs are a mixed cost. At the low level of activity (40 direct labor hours), maintenance costs are $600. At the high level of activity (100 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost?
Variable Cost
Total
Per Unit
Fixed Cost
$8.33
$267
$8.33
$500
$11.00
$220
$15.00
$400