At an Activity Level of 7,200 Machine-Hours in a Month

Multiple Choice

At an activity level of 7,200 machine-hours in a month, Falks Corporation's total variable production engineering cost is $556,416 and its total fixed production engineering cost is $226,008.What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 7,300 machine-hours in a month? Assume that this level of activity is within the relevant range.

A) $107.93
B) $107.18
C) $108.67
D) $108.24