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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 $0.50 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: