Reddy Company Has the Following Cost Formulas for Overhead Based on These Cost Formulas,what Is the Expected Total Overhead

question 18

Multiple Choice

Reddy Company has the following cost formulas for overhead:
$\begin{array}{|l|r|}\hline \text { Cost } & \text { Cost Formula } \\\hline \text { Indirect Materials } & \$ 2,000 \text { plus } \$ 0.40 \text { per machine hour } \\\hline \text { Maintenance } & \$ 1,500 \text { plus } \$ 0.60 \text { per machine hour } \\\hline \text { Machine Setup } & \$ 0.30 \text { per machine hour } \\\hline \text { Utilities } & \$ 200 \text { plus } \$ 0.10 \text { per machine hour } \\\hline \text { Amortization } & \$ 800 \\\hline\end{array}$
Based on these cost formulas,what is the expected total overhead cost at 600 machine hours?

• A) $4,500.
• B) $5,200.
• C) $5,620.
• D) $5,340.

---

Definitions:

MAN

Metropolitan Area Network; a network that interconnects users with computer resources in a geographic area or region larger than that covered by a large local area network (LAN) but smaller than the area covered by a wide area network (WAN).

LAN

Local Area Network, a network that connects computers within a limited area like a home, school, or office building.

MAN

Metropolitan Area Network, a network that interconnects users with computer resources in a geographic area larger than that covered by a LAN but smaller than a WAN.

WAN

Stands for Wide Area Network, a telecommunications network that extends over a large geographic area for the primary purpose of computer networking.