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X Company wants to estimate overhead costs in March, when production is expected

ID: 2424766 • 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.

Total  

Total Variable

Utilities

$40,100

$40,100      

Maintenance

53,000

27,560      

Supervision

23,000

0          

What is X Company's estimate of total overhead costs in March [round intermediate unit costs to the nearest cent]?

Total  

Total Variable

Utilities

$40,100

$40,100      

Maintenance

53,000

27,560      

Supervision

23,000

0          

Explanation / Answer

When productio is 1400 units

Total total variable utilities 56140 56140 maintenance 64024 38584 supervision 2300 0