The DAC-42370 company's total overhead cost at various levels of activity is presented below: Month Machine HoursTotal Overhead Cost March 5,000 $ 38,750 April 4,000 $ 31,000 May6,000 $ 46,500 June 8,000 $ 55,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable)$ 8,000 Supervisory salaries (considered fixed)$ 5,000 Maintenance (considered mixed)$ 18,000 Total overhead cost$ 31,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,900 machine hours? multiple choice $29,200 $30,400 $29,600 $29,900
