#3. A company's total overhead cost at various levels of activity is presented below. Month March Apri May June Machine-Hours 2,000 5,000 6,000 4,000 Total Overhead Cot 18,000 $28,500 $32,000 $25,000 Assume that the overhead cost above consists of direct materials, supervisory salaries, and utsites. The breakdown of these costs at the 6,000 machine-hour level of activity is as follows. Direct Materials (variable) Supervisory salaries (fixed Utilities (mixed) Total overhead cost $12,000 12,000 Suppose the company uses the high-low method to estimate a cost formula for utilities. What is the cost the company expects to incur at an activity level of 8,000 machine hours , $14,250 b $15,000 . $16,000 d. $24,000 e. $20,000