Through cost analysis Quartz Manufacturing Company has devel

Through cost analysis, Quartz Manufacturing Company has developed the following overhead cost formulas:

Overhead Cost Cost Formulas

Insurance $400

Depreciation $900

Maintenance materials $0.15 per machine hour

Utilities $600 plus $0.20 per machine hour

Based on these cost formulas, compute the total expected overhead cost if 1,500 hours of machines are worked.

NOTE:Total fixed cost and variable cost per unit do not change with change in units.

Hence total cost for 1500 hours=Insurance+Depreciation+Maintenance materials+Utilities

=400+900+(0.15*1500)+[600+(0.2*1500)]

which is equal to

=$2425.