The Frandsen Company has estimated the following cost formul

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Homework answers / question archive / The Frandsen Company has estimated the following cost formulas for overhead: Cost Formula Lubricants $1,500 plus $0

The Frandsen Company has estimated the following cost formulas for overhead: Cost Formula Lubricants $1,500 plus $0

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The Frandsen Company has estimated the following cost formulas for overhead:

		Cost Formula
	Lubricants	$1,500 plus $0.50 per machine-hour
	Utilities	$2,000 plus $0.60 per machine-hour
	Depreciation	$1,000
	Maintenance	$200 plus $0.10 per machine-hour
	Machine setup	$0.30 per machine-hour

Based on these cost formulas, the total overhead cost expected at an activity level of 300 machine hours is:

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