(Appendix 5A) the Blaine Corporation Is a Highly Automated Manufacturer

question 3

Multiple Choice

(Appendix 5A) The Blaine Corporation is a highly automated manufacturer. At an activity level of 6,000 machine setups, total overhead costs equal $240,000. Of this amount, depreciation totals $80,000 (all fixed) and lubrication totals $72,000 (all variable) . The remaining $88,000 of the total overhead cost consists of utility cost (mixed) . At an activity level of 9,000 setups, utility cost totals $112,000.
Assume that the relevant range includes all of the activity levels mentioned in this problem.
-The total fixed overhead costs for Blaine Corporation are most likely closest to:

• A) $112,000
• B) $120,000
• C) $ 40,000
• D) $ 80,000

---

Definitions:

Cost

An amount that must be paid or spent to buy or obtain something, covering a wide range of economic activities from personal finance to business operations.

Risk

The potential for encountering harm or loss when pursuing a particular action.

Altruistic Punishment

The act of punishing wrongdoers at a cost to oneself, with the intention of promoting overall societal norms or benefiting the group.

Uncooperative Players

Individuals in a game or situation who choose not to follow the established rules or norms, often seeking personal gain over collective benefit.