Davis Corporation has developed the following flexible budget formula for monthly overhead:
For output of less than 200,000 units:
S36,600 4. $.80(units)
For output of 200,000 units or more:
$43,000 + 5.80(units)
How much overhead should Davis expect if the firm plans to produce 200,000 units?
a. S196,600
b. S59,000
c. $203,000
ci. 552,600
A mixed cost has which of the following components?
Variable component IFixed component
a. yes no
b. no yes
c. yes yes
d. no no