Betty is trying to better understand her company's overhead costs to respond to an e-mail from...
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Betty is trying to better understand her company's overhead costs to respond to an e-mail from her supervisor. She quickly gathered information from the last 3 months regarding production counts and key overhead costs, as follows. # of Units Produced 600 460 480 Utility Cost $720 612 624 Indirect Material Cost $1,260 966 1,008 Depreciation Cost $5,400 5,400 5,400 (a) Based on just the information provided above, help Betty classify each of the three costs by behavior: variable, fixed, or mixed. Utility cost Indirect material cost Depreciation cost (b). If these 3 months are representative of the company's typical production, what is its relevant range? The relevant range is from units to units. Betty is trying to better understand her company's overhead costs to respond to an e-mail from her supervisor. She quickly gathered information from the last 3 months regarding production counts and key overhead costs, as follows. # of Units Produced 600 460 480 Utility Cost $720 612 624 Indirect Material Cost $1,260 966 1,008 Depreciation Cost $5,400 5,400 5,400 (a) Based on just the information provided above, help Betty classify each of the three costs by behavior: variable, fixed, or mixed. Utility cost Indirect material cost Depreciation cost (b). If these 3 months are representative of the company's typical production, what is its relevant range? The relevant range is from units to units.
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1 Classify each of the costs by behavior Variable costs These costs vary in direct proportion to cha... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
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