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(Solved) (Latest ver. Aug 2020) - Overhead Cost for Reddy Company

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53. Reddy Company has the following cost formulas for overhead:

Cost Cost Formula

Indirect materials $2,000 plus $0.40 per machine hour
Maintenance $1,500 plus $0.60 per machine hour
Machine setup $0.30 per machine hour
Utilities $200 plus $0.10 per machine hour
Depreciation $800

Based on these cost formulas, the total overhead cost at 600 machine hours is expected to be:
A)$4,500. C)$5,620.
B)$5,200. D)$5,340.

 







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