The Frandsen Company has estimated the following cost formulas for overhead:
Cost Formula
Lubricants..........$1,500 plus $0.50 per machine hour
Utilities...........$2,000 plus $0.60 per machine hour
Depreciation........$1,000
Maintenance.........$200 plus $0.10 per machine hour
Machine set-up......$0.30 per machine hour
Based on these cost formulas, the TOTAL OVERHEAD COST expected at an activity level of 300 machine hours is:
A) $4,950
B) $5,000
C) $4,700
D) $5,150