Average Maintenance Costs Are $1

Multiple Choice

Average maintenance costs are $1.50 per machine-hour at an activity level of 8,000 machine-hours and $1.20 per machine-hour at an activity level of 13,000 machine-hours.Assuming that this activity is within the relevant range,total expected maintenance cost for a budgeted activity level of 10,000 machine-hours would be closest to:

A) $16,128
B) $15,000
C) $13,440
D) $11,433