12. Acompanystotaloverheadcostatvariouslevelsofactivityispresentedbelow:

Month Machine hours Total overhead cost

March ......................................5000 21,750

April .........................................4000 19000

May ........................................6000 25000

. June ........................................7000 28,750

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 (variable) ............................... Supervisory salaries (fixed) ................. Maintenance (mixed) .......................... Total overhead cost ............................

Suppose the company uses the high-low method to estimate a cost formula for maintenance. What is the total maintenance cost the company expects to incur at an activity level of 7,600 machine hours? Show all the steps

A. 12640

B. 13400

C. 12800

D. 11500

E. none of above