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can someone please help solve this and show work? thank you so much 23. A company's total overhead cost at various levels of activity is
can someone please help solve this and show work? thank you so much
23. A company's total overhead cost at various levels of activity is presented below: Month Machine-Hours Total Overhead Cost March 5,000 $21,750 April 4,000 $19,000 May 6,000 $25,000 June 7,000 $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 $ 8,000 4,000 7,000 $19,000 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? a. $12,640 b. $13,400 c. $12,800 d. $11,500 None of the above eStep by Step Solution
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