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Timchak Corporation Reports That at an Activity Level of 9,900

question 103

Multiple Choice

Timchak Corporation reports that at an activity level of 9,900 units, its total variable cost is $919,116 and its total fixed cost is $259,974. What would be the total cost, both fixed and variable, at an activity level of 10,100 units? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a chosen activity base, like labor hours or machine hours.

Machine-Hours

A measure of production output or activity based on the number of hours machines are operational.

Work in Process

Goods that are under production but not yet finalized.

Raw Materials Transactions

Financial exchanges involved in purchasing the basic substances used in production processes.

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