Average Maintenance Costs Are $1

question 29

Multiple Choice

Average maintenance costs are $1.50 per machine hour at an activity level of 8,000 machine hours and $1.20 per machine hour at an activity level of 13,000 machine hours.Assuming that this activity is within the relevant range,total expected maintenance cost for a budgeted activity level of 10,000 machine hours would be closest to which of the following?

• A) $11,433.
• B) $13,440.
• C) $15,000.
• D) $16,128.