X Company's accountant analyzed the following total overhead costs in March to develop a cost function that
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Question:
X Company's accountant analyzed the following total overhead costs in March to develop a cost function that could be used to estimate overhead costs in future months.
Supplies $24,700
Mainenance 22,200
Insurance 10,200
The accountant classified these costs as follows:
- all of the supply costs were variable
- all of the insurance costs were fixed
- $4,440 of the mainenance costs were fixed
March production was 1,200 units; June production is expected to be 1,320 units.
What are estimatedtotal variablecosts in June [round variable costs per unit to two decimal places]?
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
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