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Cost formulas for overhead

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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 set-up......$0.30 per machine hour;Based on these cost formulas, the TOTAL OVERHEAD COST expected at an activity level of 300 machine hours is;A)$4,950;B)$5,000;C)$4,700;D)$5,150

 

Paper#26041 | Written in 18-Jul-2015

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