At an Activity Level of 7,200 Machine-Hours in a Month

question 4

Multiple Choice

At an activity level of 7,200 machine-hours in a month, Falks Corporation's total variable production engineering cost is $556,416 and its total fixed production engineering cost is $226,008.What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 7,300 machine-hours in a month? Assume that this level of activity is within the relevant range.

• A)$107.93
• B)$107.18
• C)$108.67
• D)$108.24

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