At an Activity Level of 9,000 Machine-Hours in a Month

question 261

Multiple Choice

At an activity level of 9,000 machine-hours in a month, Moffatt Corporation's total variable maintenance cost is $390,240 and its total fixed maintenance cost is $368,280.What would be the total variable maintenance cost at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

• A) $758,520
• B) $403,248
• C) $390,240
• D) $380,556

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Definitions:

Corporation's Assets

The resources owned by a corporation that have economic value and can be used to meet its financial obligations.

Preferred Stockholders

Preferred stockholders are investors who own shares of a company's preferred stock, which often provides fixed dividends and priority over common stockholders in asset liquidation.

Current-Year Dividends

The dividends paid by a company to its shareholders from its earnings of the current fiscal year.

Common Stockholders

Owners of common stock in a corporation, who have voting rights and may receive dividends, but are typically last in line to receive assets in the event of liquidation.