Reference: 06-04 in the O'Donnell Manufacturing Company, at an Activity Level of Level

question 42

Multiple Choice

Reference: 06-04
In the O'Donnell Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were
$223,000. Of this amount, utilities were $48,000 (all variable) and depreciation was $60,000 (all fixed) . The balance of the overhead cost consisted of maintenance cost (mixed) . At 100,000 machine hours, maintenance costs were $130,000.
Assume that all of the activity levels mentioned in this problem are within the relevant range.
-If 110,000 machine hours of activity are projected for next period, total expected overhead cost would be?

• A)$256,000.
• B)$306,625.
• C)$242,500.
• D)$263,500.

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Definitions:

Altruistic

Demonstrating selfless concern for the well-being of others; often involving acts of kindness without expecting anything in return.

Christian Love

The concept of love characterized by compassion, selflessness, and sacrifice, as taught and exemplified in Christian teachings.

Undemanding

Requiring little effort or work, not challenging or stressful.

Engagement

The period of time between agreeing to marry and the marriage ceremony.