In the O'Donnell Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were $223,000. Of this amount, utilities were $48,000 (all variable) and amortization was $60,000 (all fixed). The balance of the overhead costs consisted of maintenance cost (mixed). At 100,000 machine hours, maintenance costs were $130,000.
Assume that all the activity levels mentioned in this problem are within the relevant range.
What is the total fixed overhead cost for O'Donnell?
Question 8 options:
$55,000
$60,000
$115,000
$130,000
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