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Question(s) / Instruction(s):

An analysis of a particular cost incurred in a factory indicates that the cost is an average of $0.40 per machine-hour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected cost if the activity level is 17,300 machine-hours? A) $1,600 B) $6,960 C) $8,000 D) $9,000

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