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In the Brooklyn Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were $223,000. Of this amount, variable utilities were $48,000
In the Brooklyn Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were $223,000. Of this amount, variable utilities were $48,000 and fixed amortization was $60,000. The balance of the overhead costs consisted of maintenance cost (a mixed cost). At 100,000 machine hours, maintenance cost was $130,000. Assume that all of the activity levels mentioned in the problem are within the relevant range. If next months machine hours are 90,000, what would be the total expected overhead?
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