At an Activity Level of 9,600 Machine-Hours in a Month

Multiple Choice

At an activity level of 9,600 machine-hours in a month, Montgomery Corporation's total variable production engineering cost is $402,336 and its total fixed production engineering cost is $570,240. What would be the total production engineering cost, both fixed and variable, at an activity level of 9,900 machine-hours in a month? Assume that this level of activity is within the relevant range.

A) $101.31
B) $99.51
C) $98.24
D) $99.78