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Design Fashion Has an Average Overhead Cost Per Hour of $21.00

Question 85

Multiple Choice

Design fashion has an average overhead cost per hour of $21.00 at 3,500 machine hours, and at 3,000 hours it is $22.50. The company managers wish to estimate the overhead cost function. What is the fixed overhead cost?


A) $15,750
B) $36,750
C) $31,500
D) $6,000

Correct Answer:

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