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:

Naïve Psychology

An everyday, common-sense psychology that people use to understand and explain their own and others' behaviors.

Mental States

The condition of one's mind or psychological being at a particular time, including thoughts, feelings, and consciousness.

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The maximum amount of information that an individual can perceive, analyze, and remember at any given time, which influences cognitive performance and task efficiency.

Preschool Children

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