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

Question 31

Multiple Choice

Reddy Company has the following cost formulas for overhead:
 Cost  Cost Formula  Indirect Materials $2,000 plus $0.40 per machine hour  Maintenance $1,500 plus $0.60 per machine hour  Machine Setup $0.30 per machine hour  Utilities $200 plus $0.10 per machine hour  Amortization $800\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.

Correct Answer:

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