Factory Maintenance Costs Are Estimated for Bing Company Based on the Level

Multiple Choice

Factory maintenance costs are estimated for Bing Company based on the level of machine hours used.If total monthly fixed costs are $150,000,variable costs per machine hour are $8,and 15,000 machine hours are expected to be used in June,which of the following would be the best estimate of total maintenance costs?

A) $150,000
B) $120,000
C) $30,000
D) $270,000
E) None of the answer choices is correct.