Answered: What is the best estimate of total…

What is the best estimate of total operating costs if the expected fleet mileage 2019 is 482,000 miles? Round your answer to the nearest dollar.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

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Question

| Dally Inc. has the following information about its truck fleet miles and
operating costs:
Year
2016
2017
Miles
400,000
428,000
560,000
Operating Costs
$256,000
$254,000
$320,000
2018
What is the best estimate of total operating costs if the expected fleet mileage for
2019 is 482,000 miles? Round your answer to the nearest dollar.
a. $288,800
b. $267,667
с. $289,200
d. $125,000
e. $192,800
f. $308,480
g. $281,000
h. None of the above.
3.

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