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I need help with this problem. Thanks Pelican Inc. is a manufacturing company whose...

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Accounting

imageI need help with this problem. Thanks

Pelican Inc. is a manufacturing company whose total factory overhead costs fluctuate somewhat from month to month according to the number of machine-hours worked in its production facility. These costs for the last four months in 2014 are given below Machine-hours Total factory overhead September October November December 6,500 8,500 5,000 10,000 $ 108,900 $ 127,100 $ 88,000 $ 108,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 5,000 machine-hours level of activity as follows Indirect materials (variable) Rent (fixed) Maintenance (mixed) Total factory overhead costs 34,000 50,000 $ 88,000 Assume that all data are within the relevant range, using the high-low method how much maintenance cost would you expect the company to incur at an operating level of 7,000 machine-hours? (Round to the nearest dollars.) A. $ 54,400 56,400 62,000 66,000 E. None of the above

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