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Sonor Systems undertakes its own machine maintenance

Accounting

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Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Compute the total machine maintenance cost for last year.

a.$550,000

b.$420,000

c.$20,000

d.$570,000