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11. Tortellini Corporation has provided the following production and average cost data for five levels of monthly production volume. The company produces a single product.

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11. Tortellini Corporation has provided the following production and average cost data for five levels of monthly production volume. The company produces a single product. Month Machine Hours Total Overhead Cost January ....... 4,000 $29,750 2,000 $22,000 March - 3,000 $25,000 April..... 5,000 $33,750 6,000 $41,000 February - May - Assume that the overhead cost above consists of indirect materials, supervisory salaries, and utilities. The breakdown of these costs at the 2,000 machine-hour level of activity is as followe Indirect Materials (variable) ................. $8,000 Supervisory Salaries (fixed).... .. $5,000 Utilities (mixed).... ................. $9.000 Total overhead cost -..... $22,000 Suppose the company uses the high-low method to estimate a cost formula for utilities. What is the total utilities cost the company expects to incur at an activity level of 8,100 machine hours? a $16,050 b. $15,480 C $13,575 d. $24,930 e. None of the above

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