Abbott Company's manufacturing overhead is 20% of its total conversion costs. If direct labor is $38,000 and if direct materials are $23,000, the manufacturing overhead is:

A.

$9,500

B.

$152,000

C.

$5,750

D.

$15,250

8.

The following data pertains to activity and utility cost for two recent periods:

Activity level (units)	8,000	5,000
Utility cost	$8,000	$6,150

Utility cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for utility cost is:

A.	Y = $1.00 X

B.	Y = $1.25 X

C.	Y = $4,000 + $0.50 X

D.	Y = $1,500 + $1.25 X