X Company wants to estimate overhead costs in March, when production is expected
ID: 2424499 • Letter: X
Question
X Company wants to estimate overhead costs in March, when production is expected to be 1,500 units. It used account analysis with the January cost information below to determine the parameters of the cost function. January production was 1,000 units.
1. What is X Company's estimate of total overhead costs in March [round intermediate unit costs to the nearest cent]? ( )
I have one chance left, please give me correct answer. Thanks!
Total Total Variable Utilities $41,800 $41,800 Maintenance 50,000 25,000 Supervision 20,000 0Explanation / Answer
X Company's estimate of total overhead costs in March Items of OH Costs Nature of the cost Units of production Var.OH Cost/unit Total VOH Fixed OH Total OH Utilities Variable 1500 41.8 62700 0 62700 Maintenance Semi-variable 1500 25 37500 25000 62500 Supervision Fixed 1500 0 0 20000 20000 Total OH costs 100200 45000 145200 Total OH costs estimated for March = $ 145200
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