Guy Spy, a private investigation firm, has the following costs for December: Direct labor: $190 per case
Question:
Guy Spy, a private investigation firm, has the following costs for December: 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.
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Activity Volume Level Cost Highest 97 cases 21350 Lowest 91 cases 20840 Difference 6 ...View the full answer
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