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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 company's total overhead cost at various levels of activity is presented below:
Month
Machine Hours Total Overhead Cost
March
$
April
$
May
$
June
$
Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the machinehour level of activity is as follows:
Utilities considered variable $
Supervisory salaries considered fixed $
Maintenance considered mixed $
Total overhead cost $
Suppose the company uses the highlow 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 machine hours?
multiple choice
$
$
$
$
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