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The DAC - 7 1 0 1 9 company's total overhead cost at various levels of activity is presented below: Month Machine Hours Total Overhead

The DAC-71019 company's total overhead cost at various levels of activity is presented below:
Month
Machine Hours Total Overhead Cost
March
5,000
$ 43,750
April 4,000
$ 35,000
May 6,000
$ 52,500
June 9,000
$ 70,000
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) $ 5,000
Maintenance (considered mixed) $ 18,000
Total overhead cost $ 35,000
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 5,800 machine hours?
multiple choice
$26,000
$25,000
$25,200
$25,600

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