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Milano Company Has an Average Overhead Cost Per Hour of $10.50

Question 115

Multiple Choice

Milano Company has an average overhead cost per hour of $10.50 at 3,500 machine hours, and at 3,000 hours it is $11.25. The company managers wish to estimate the overhead cost function. What is the fixed overhead cost?


A) $15,750
B) $36,750
C) $21,000
D) $18,000

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