An IT company analyzes its overhead costs for various services over six quarters Quarter Services Provided Total Cost U Cost per Service U Total Cost V Cost per Service V Total Cost W Cost per Service W 1 300 $9,000 $12,000 $6,000 2 600 $9,000 $15,000 $12,000 3 150 $9,000 $7,500 $3,000 4 450 $9,000 $11,000 $9,000 5 750 $9,000 $16,000 $15,000 6 225 $9,000 $8,500 $4,500 Required a Compute the cost per service for each cost b Classify each cost as fixed, variable, or mixed c Analyze how each cost behavior influences service delivery cost control d Discuss the importance of cost behavior understanding in financial forecasting e Recommend strategies for overhead cost management based on cost behavior analysis

Question: An IT company analyzes its overhead costs for various services over six quarters. Quarter Services Provided Total Cost U Cost per Service U Total Cost

An IT company analyzes its overhead costs for various services over six quarters.

Quarter	Services Provided	Total Cost U	Total Cost V	Total Cost W
1	300	$9,000	$12,000	$6,000
2	600	$9,000	$15,000	$12,000
3	150	$9,000	$7,500	$3,000
4	450	$9,000	$11,000	$9,000
5	750	$9,000	$16,000	$15,000
6	225	$9,000	$8,500	$4,500

Required: a. Compute the cost per service for each cost. b. Classify each cost as fixed, variable, or mixed. c. Analyze how each cost behavior influences service delivery cost control. d. Discuss the importance of cost behavior understanding in financial forecasting. e. Recommend strategies for overhead cost management based on cost behavior analysis.

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