The following information pertains to questions (4) and (5): Golden Companys total overhead cost consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows:

Activity level (machine hours): 4,000 12,000

Utilities (variable)

$12,000

+ Supervisory salaries (fixed)

$18,000

+ Maintenance cost (mixed)

$30,000 ? = Total overhead cost (mixed) $60,000 $124,000 4) (5 points) What is the maintenance cost at 12,000 machine hours of activity? (A) $50,000 (B) $60,000 (C) $70,000 (D) $80,000

5) (5 points) What is the fixed component of the total overhead cost? (A) $36,000 (B) $24,000 (C) $32,000 (D) $28,000