The Frandsen Company has estimated the following cost formulas for overhead:

Cost Formula

Lubricants..........$1,500 plus $0.50 per machine hour

Utilities...........$2,000 plus $0.60 per machine hour

Depreciation........$1,000

Maintenance.........$200 plus $0.10 per machine hour

Machine set-up......$0.30 per machine hour

Based on these cost formulas, the TOTAL OVERHEAD COST expected at an activity level of 300 machine hours is:

A)$4,950

B)$5,000

C)$4,700

D)$5,150

Cost Formula

Lubricants..........$1,500 plus $0.50 per machine hour

Utilities...........$2,000 plus $0.60 per machine hour

Depreciation........$1,000

Maintenance.........$200 plus $0.10 per machine hour

Machine set-up......$0.30 per machine hour

Based on these cost formulas, the TOTAL OVERHEAD COST expected at an activity level of 300 machine hours is:

A)$4,950

B)$5,000

C)$4,700

D)$5,150

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