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company's total overhead cost at various levels of activity is presented below: Month Machine Hours Total Overhead Cost March 5 , 0 0 0 $

company's total overhead cost at various levels of activity is presented below:
Month
Machine Hours Total Overhead Cost
March
5,000
$ 32,500
April 4,000
$ 26,000
May 6,000
$ 39,000
June 9,000
$ 51,000
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 (considered variable) $ 12,000
Supervisory salaries (considered fixed) $ 4,000
Maintenance (considered mixed) $ 10,000
Total overhead cost $ 26,000
Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,400 machine hours?
multiple choice
$15,600
$14,800
$15,300
$14,400

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