Grace Faces, Inc What Is the Budget for Maintenance If 10,000 Reflectors Were

question 100

Multiple Choice

Grace Faces, Inc., has done a cost analysis for the production of reflectors in its factory. The following activities and cost drivers have been developed: $$\begin{array} { l l } \text { Activity } & \text { Cost Formula } \\\text { Maintenance } & \$ 20,000 + \$ 3 \text { per machine hour } \\\text { Machining } & \$ 40,000 + \$ 2 \text { per machine hour } \\\text { Inspection } & \$ 32,000 + \$ 600 \text { per batch } \\\text { Setups } & \$ 1,200 \text { per batch } \\\text { Purchasing } & \$ 56,000 + \$ 8 \text { per purchase order }\end{array}$$ What is the budget for maintenance if 10,000 reflectors were made that required 2,200 machine hours, 10 batches, and 3,000 purchase orders?

• A)$15,500
• B)$10,250
• C)$26,600
• D)$11,200