The DAC-59183 company's total overhead cost at various levels of activity is presented below: Month March April May June Machine Hours 5,000 4,000 6,000 9,000 Total Overhead Cost $ 32,500 $ 26,000 $ 39,000 $ 51,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) Supervisory salaries (considered fixed) Maintenance (considered mixed) Total overhead cost $12,000 $4,000 $10,000 $ 26,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,400 machine hours? O $15,600 O $15,300 O $14,800 O $14,400

The DAC-59183 company's total overhead cost at various levels of activity is presented below: Month March April May June Machine Hours 5,000 4,000 6,000 9,000 Total Overhead Cost $ 32,500 $ 26,000 $ 39,000 $ 51,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) Supervisory salaries (considered fixed) Maintenance (considered mixed) Total overhead cost $12,000 $4,000 $10,000 $ 26,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,400 machine hours? O $15,600 O $15,300 O $14,800 O $14,400

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Description: The DAC-59183 company's total overhead cost at various levels of activity is presented below:MonthMarchAprilMayJuneMachine Hours5,0004,0006,0009,000Total Overhead Cost$ 32,500$ 26,000$ 39,000$ 51,000Assume that the overhead cost above consists of ut

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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Similar questions

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