Guy Spy, a private investigation firm, has the following costs for December: Direct labor: $190 per case
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Direct labor: $190 per case
Service overhead
Salary for director of investigations........................ $ 4,800
Telephone........................................................... 930
Depreciation...................................................... 8,300
Legal advice...................................................... 2,300
Supplies............................................................. 590
Advertising......................................................... 360
Utilities........................................................... 1,560
Wages for clerical personnel.................................. 2,000
Total service overhead...................................... $20,840
Service overhead for October was $21,150; for November, it was $21,350. The number of cases investigated during October, November, and December was 93, 97, and 91, respectively. Compute the variable and fixed cost components of service overhead. Then determine the variable and fixed costs per case for December. (Round to nearest dollar where necessary.)
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Related Book For
Principles of Accounting
ISBN: 978-0618736614
10th edition
Authors: Belverd Needles, Marian Powers, Susan Crosson
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