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

question 61

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.
-If 7,800 setups are projected for the next period,total expected overhead cost would be closest to:

• A) $156,000
• B) $236,000
• C) $214,400
• D) $276,000

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Definitions:

GDP

GDP, or Gross Domestic Product, is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Health Care Spending

The total expenditure on health services by individuals, insurance companies, and governments, including the cost of medical products, treatments, and preventive services.

U.S. Health Care Expenditures

The total amount of money spent on health care services and products in the United States, including private and public spending.

GDP

The sum of the market or monetary value of all produced finished goods and services within a nation's boundaries over a particular timeframe is known as the Gross Domestic Product.