What is the fixed portion of quantum company maintenance

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Reference no: EM132703416

Quantum Company wishes to determine the fixed portion of its maintenance expense (a semi-variable expense), as measured against direct labor hours for the first three 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 costs

January 34,000 hours P 61,000

February 31,000 hours 58,500

March 34,000 hours 61,000

Problem 1: What is the fixed portion of Quantum Company's maintenance expense, rounded to the nearest pesos?

a. P 28,330 c. P 37,200

b. P 32,667 d. P 40,800

Reference no: EM132703416

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