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

(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

Correct Answer:

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