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6 7 Augusta Inc. is a manufacturing company whose total factory overhead costs fluctuate somewhat from month to month. The manager of the company believes

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6 7 Augusta Inc. is a manufacturing company whose total factory overhead costs fluctuate somewhat from month to month. The manager of the company believes that the cost driver is the number of machine-hours used in its production facility. These costs for the last four months in 2020 are given below. Machine-hours Total factory overhead September 6,500 $ 104,400 October 10,000 $ 130,000 November 8,500 $ 118,500 December 5,000 $ 100,000 costs at the 5,000 machine-hours level of activity as follows: The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these Indirect materials (variable) $ 10,000 Rent (fixed) Maintenance (mixed) 50.000 Total factory overhead costs $ 100,000 Assume that all data are within the relevant range, using the high-low method how much maintenance cost would you expect the company to incur at an operating level of 7100 machine-hours? (Round to the nearest dollars.) $ 51,300 B. $ 58,400 c. $ 72,600 D. $ 37,810 E. None of the above A

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