X Company wants to estimate overhead costs in March, when production is expected
ID: 2424274 • Letter: X
Question
X Company wants to estimate overhead costs in March, when production is expected to be 1,400 units. It used account analysis with the January cost information below to determine the parameters of the cost function. January production was 1,000 units.
What is X Company's estimate of total overhead costs in March [round intermediate unit costs to the nearest cent]?
Please Help and Explain!!! Thank you!
Total Total Variable Utilities $40,100 $40,100 Maintenance 53,000 27,560 Supervision 23,000 0Explanation / Answer
Solution.
Calculation of overhead.
Total overhead = $145,284.
For 1,000 unit Particular Total Variable VariablePer unit Utilities 40,100 40,100 40.10 Maintenance 53,000 27,560 27.56 Supervision 23,000 - - Total 116,100 67,660 67.66 For 1,400 unit Particular Total Variable Per unit Utilities 56,140 56,140 40.10 Maintenance 66,144 38,584 27.56 Supervision 23,000 - - Total 145,284 94,724 67.66Related Questions
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