(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

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Definitions:

Auricle

The external portion of the ear that captures sound waves and directs them into the auditory canal.

Atrium

An open-roofed entrance hall or central court in an ancient Roman house, or a similar large open space in a modern building.

Alveoli

Tiny air sacs in the lungs where gas exchange between air and blood occurs.

Fallopian Tube

A pair of tubes along which eggs travel from the ovaries to the uterus, crucial for fertilization and early embryo transport.