The DAC-28155 company's total overhead cost at various levels of activity is presented below: Month March April May Machine Hours 5,000 4,000 6,000 8,000 Total Overhead Cost $ 42,500 $ 34,000 $ 51,000 $ 60,000 0 June 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 $16,000 $4,000 $14,000 $ 34,000 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 5,000 machine hours? $16,500 $17,300 $16,800 $16,300

The DAC-28155 company's total overhead cost at various levels of activity is presented below: Month March April May Machine Hours 5,000 4,000 6,000 8,000 Total Overhead Cost $ 42,500 $ 34,000 $ 51,000 $ 60,000 0 June 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 $16,000 $4,000 $14,000 $ 34,000 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 5,000 machine hours? $16,500 $17,300 $16,800 $16,300

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Description: The DAC-28155 company's total overhead cost at various levels of activity is presented below:MonthMarchAprilMayMachine Hours5,0004,0006,0008,000Total Overhead Cost$ 42,500$ 34,000$ 51,000$ 60,0000JuneAssume that the overhead cost above consists of u

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...

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