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In the O'Donnell Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were RM223,000. Of this amount, utilities were RM48,000 (all
In the O'Donnell Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were RM223,000. Of this amount, utilities were RM48,000 (all variable) and depreciation was RM60,000 (all fixed). The balance of the overhead cost consisted of maintenance cost (mixed). At 100,000 machine hours, maintenance costs were RM130,000. Assume that all of the activity levels mentioned in this problem are within the relevant range.
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