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Fixed Overhead Costs Variable Overhead Costs 18,000 18,000 $222,000 $360,000 It

ID: 2433480 • Letter: F

Question

Fixed Overhead Costs

Variable Overhead Costs

18,000

18,000

$222,000

$360,000

It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours.
During October, 27,000 direct labor hours were worked and the following overhead costs were incurred.

For the Year 2008

27000

30000

33000

36000

1,500

Fixed Overhead Costs

Variable Overhead Costs

Supervision $90,000 Indirect labor $126,000 Depreciation 60,000 Indirect materials 90,000 Insurance 30,000 Repairs 54,000 Rent 24,000 Utilities 72,000 Property taxes

18,000

Lubricants

18,000

$222,000

$360,000

Explanation / Answer

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