At an Activity Level of 9,600 Machine-Hours in a Month

question 46

Multiple Choice

At an activity level of 9,600 machine-hours in a month, Montgomery Corporation's total variable production engineering cost is $402,336 and its total fixed production engineering cost is $570,240. What would be the total production engineering cost, both fixed and variable, at an activity level of 9,900 machine-hours in a month? Assume that this level of activity is within the relevant range.

• A) $101.31
• B) $99.51
• C) $98.24
• D) $99.78

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