ErkkilaIncorporated Reports That at an Activity Level of 2,100 Machine-Hours

question 120

Multiple Choice

ErkkilaIncorporated reports that at an activity level of 2,100 machine-hours in a month, its total variable inspection cost is $69,846 and its total fixed inspection cost is $9,072.What would be the total variable inspection cost at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

• A) $78,918
• B) $69,846
• C) $79,824
• D) $10,368

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